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  • Profile photo of OwnHomeOwnHome
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    @ownhome
    Join Date: 2010
    Post Count: 7
    August 2, 2010 - 1:04 am

    Hi Terry,
    Thanks for the prompt reply.

    The trust is buying investment property from us. We will move out to the new place. So no Tax complications from ATO.

    Can the Trust claim the expenses(ex: carpets,painting etc) and interest at the end of the year or when the property sold?

    Sorry I know nothing about trust and invesments,  trying to find out whether to sell our property(no mortgage exist) to trut  for investing before we move to new place or sell it.

    Thanks

    Profile photo of OwnHomeOwnHome
    Member
    @ownhome
    Join Date: 2010
    Post Count: 7
    August 2, 2010 - 12:40 am

    Thanks Terry, I should have been clear.

    Terryw wrote:
    a. Stamp duty is a capital expense, so it could only be claimed against any CG when sold.

    When sold to Trust or when the Trust sells it off in the future.??

    Terryw wrote:
    b. Depends what you mean by "we". You as an individual cannot claim interest on loan the trustee takes out to purchase trust property. The trust would claim the interest. If the trust is a unit trust and you  borrow to buy the units you may be able to claim the interest.

    Sorry to be clear, We=Family Trust…Can the Family trust claim the interest at the end of the year??

    Terryw wrote:
    c. any expenses relating to the purchase or operation of an investment property can be claimed  – by the owner of the property.

    The family Trust buys the property, so they can claim 100% of the expenses?

    Profile photo of OwnHomeOwnHome
    Member
    @ownhome
    Join Date: 2010
    Post Count: 7
    August 2, 2010 - 12:01 am
    Terryw wrote:
    Villas would be counted. Land tax is payable on the land component only. Main residences are usually exempt and investment properties up to a certain value are exempt. I am not sure of the rules for WA, but in NSW there is no exemption for trusts.

    eg. In NSW  you owned a house worth $500,000 with a land value of $300,000 there would be no land tax payable, where is if this was held in a trust then 1.6% pa = $4800 would be payable every year. Huge impact.

    Thanks Terry.

    Just a quick clarification..

    a. Can the stamp duty paid on this property be claimed ?? If so when?

    b. Can we claim the interest paid ?? If so when?

    c. What percentage of the expenses spent can  be claimed ??

    Got different answers , hence thot of seeking your advise.

    Cheers

    Profile photo of OwnHomeOwnHome
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    @ownhome
    Join Date: 2010
    Post Count: 7
    July 8, 2010 - 7:05 am

    Do we need to pay Land tax even for Villas?? Our current property is a Villa in Perth

    Profile photo of OwnHomeOwnHome
    Member
    @ownhome
    Join Date: 2010
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    July 8, 2010 - 6:04 am

    Hi Terry, Thanks for the word of caution.Yes,
     we are aware of the risks involved in the worst case. Not sure about the Landtax tho'
    We are currently building new house so we r intending to rent it out ourselves until the house is finished .
    I assume this should not be problem as it will be short term 6-8 months.
    The bank would not discharge the current house as its being used as security for the new loan (wat ever that means)

    We are aware of the Stamp duty n other admin bank fees.

    Can we do the conveyancing ourselves or is it better to shell some $$ on the settlement agent.
    Either way could you detail what are the steps to be taken.

    Profile photo of OwnHomeOwnHome
    Member
    @ownhome
    Join Date: 2010
    Post Count: 7
    May 25, 2010 - 4:50 am

    Hi Terryw ,
      Myself n hubby live in Perth, own a villa. We are building a new property and want to use the existing one as an investment. Both of us earn ard same income 80K (permanent position) & 90K (contract job). We have a 3yo.

    Is it worth setting up a Family trust to hold the existing property as investment?
    Is it better to have Unit trust instead of family trust in our case

    Thanks

Viewing 6 posts - 1 through 6 (of 6 total)