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    March 10, 2008 - 11:03 am

    sometimes they use it to see what the market is willing to pay. 

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    February 8, 2008 - 1:00 am

    basiclly what you are talking about is the 80/20 rule right?  i.e. you cant earn more than 80% of your income from the one source

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    February 7, 2008 - 7:58 am

    great.. thanks Terry!!

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    February 6, 2008 - 1:17 pm

    Thanks . Its late and I dont make a lot of sense about this stuff.  I want to reduce my wage with the company I work for but then invoice them from the trust for contract work i do for them.  This can then help offset rental losses and allow me to distribute income to a lower tax payer.   make sense?  As its a DT I cant claim the loss until I sell the property but I can offset the loss with other income that comes into the trust.

    Cheers
    Ben

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    February 6, 2008 - 11:08 am

    Thanks Terry.. I am still a bit lost sorry. I am slow.  :-)  You are saying I can claim expenses but can I invoice for services.  What I am thinking of doing is invoicing my employer for part of my wage to help offset losses in  the trust. 

    Cheers
    Ben

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    February 5, 2008 - 3:21 am

    sorry…another question. Does the invoice have to be property related or can I invoice a company for work done that is in no way related to the trust assets or property?

    Cheers
    Ben

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    February 5, 2008 - 2:00 am

    True and true.  have a look at https://www.propertyinvesting.com/forums/getting-technical/finance/4323604#comment-168079

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    February 5, 2008 - 1:19 am

    Thanks Richard.  Much appreciated.  This will affect our call later in the week  :-)

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    February 4, 2008 - 9:29 pm

    Thanks Terry.  Does this mean I can invoice out using the ABN and if the income is less than 75K I dont need to register for GST?

    Cheers
    Ben

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    February 3, 2008 - 10:23 am

    I am setting up a DT and it will cost me about $250.  I also set up a company for $900.

    Cheers
    Ben

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    February 3, 2008 - 9:57 am

    heres a good one

    http://www.yourmortgage.com.au/calculators/can_i_afford_investment_property/

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    February 3, 2008 - 9:13 am

    sitting here reading these forums and not be able to get our first investment property off the ground. Spend hours on it but struggling to get it happening.  :-)

    They do say the first is your hardest.

    Cheers
    Ben

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    February 3, 2008 - 8:54 am

    maybe find an investor to help finance the reno's and profit share???

    Cheers
    Ben

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    February 3, 2008 - 8:45 am

    not that this is overally easy but it has helped me do some basic calculations.  Have a look at http://calculators.ato.gov.au/scripts/asp/simpletaxcalc/main.asp   I put in my annual income as it stands today to work out how much tax I would pay.  I then work out how much tax I could claim on a property and then deduct that from my annual income and use that figure on the calculator.  The difference is your refund.

    What I struggle with is working out how much depreciation etc you can claim from a property.

    Cheers
    Ben

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    February 3, 2008 - 8:40 am

    Hi all,

    what are the tax implications though?  If you purchase a property through a company you dont get any capital gain discounts do you?  Plus you can distribute income without being subject to 30% company tax.  Is this correct?

    Cheers
    Ben

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    January 13, 2008 - 5:10 am

    Hi all,

    I am still learning so someone like Richard will be able to confirm or deny the following.  My understanding of one of the differences between the Hybrid Trust and a Discretionary Trust is the way Negatively Geared properties are handled.

    A Hybrid allows you to claim the tax benefits on the rental losses made from an IP each year.  The Discretionary Trust losses can only be claimed once the IP is sold.

    Cheers
    Ben

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    January 12, 2008 - 11:40 pm

    Hi,

    We are in the middle of setting things up and have just seen a very good accountant. The accountant has advise that Hybrid Trusts are being frowned upon by the ATO.  They are still an option but he has strongly suggested we go for a family/Discretionary trusts.

    Cheers
    Ben

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