Thanks Terry & JJ,Terry, we have Trustee Company so property losses could be offset, right? Is it dangerous due to asset protection in the event of being sued?I will speak to our accountant about what you have recommended.JJ, yes your concern is my concern and it was prior to setting up our trust. Our accountant informed us it would not be a p…[Read more]

Hi,I am still new to the forum and looking at purchasing my first investment property through our family trust.After reading Terry's post on "not being able to offset losses against personal income" I am a little confused.We really needed to reduce my husbands personal income tax, so we set up a Company with a discretionary family trust (T…[Read more]

Thanks Terry and Richard,Just to clarify, I should just organise finance (loan at int only) for the IP based on equity in PPoR and not take out a LOC on my PPoR. Pootie  

Thanks Terry,With the knowledge and great guidance from this forum I have thought things though and will most likely do the following:1. Buy an IP through our Family Trust with LOC and rent it as tenants (ensuring we meet ATO guidelines and may also apply for a private ruling as suggested if needed.2. Change my curent PPoR loan to int only, with…[Read more]

Hi,Thanks for responses.Terry, our accountant has concerns about the ATO not being happy with PSI, as my husband is the only income earner at the moment and may be for a few years at this stage. He wanted the Trust to earn money form another source or aquire an IP to appear not to be avoiding tax or a scheme? We are currently looking at fin…[Read more]

Hi Jamie & Terry,Thankyou both very much.I will contact the bank and get things happening.I look forward to starting an investment portfolio and accumulating property for my growing family of six, as well as reading some of the recommended literature. This forum has been interesting and educational, I am officially addicted and love reading the…[Read more]

I will be keeping our current PPoR as our main residence and selling within the 6 year rule. So it wouldn't be an issue for a while, but understand your concern.We plan on having a few IP's within 5 years anyway, which will all be subject to land tax either purchased though the Trust or personally – am I right in assuming this?If after the sale…[Read more]

I will look into private rulings….I hope it is easier than it sounds.So long as the land tax is a deductable expense for the Trust, it works for us as it reduces our taxable income.By "main residences", do you mean the one we intend to rent, or will the tax apply to all of the Trust properties?Thanks again for your time Terry and prompt…[Read more]

I am in N.S.W and will look into land taxes.Thanks for links Terry. So it would seem that the Trust can begin to acquire investment properties and we could rent one of them and it would be a legitimate transaction for taxation purposes provided.1. The Trust acquires other properties at some stage.2. We pay market rent.3. We only stay in the pro…[Read more]

Terry,Big thanks for your thoughts, I am just trying to get my head around things. Your advise is invaluable and I thankyou for your time.I will look into the extra costs involved.N.B I was checking out the ATO rulings earlier to ensure legitimacy of a Director renting a property from a Trust they have an interest in. As we intend to purchase a f…[Read more]

A Trustee Company sounds familiar, our accountant has tried to explain the structure but it is evident that I am still unsure. I will clarify things with our accountant. And yes, sorry my understanding is that the nominated beneficiaries are my husband myself and our children…..something to check out also.Does my proposal sound crazy?We need a…[Read more]

Hi Terryw,I has read similar elsewhere and will investigate further. In relation to the valid point points you have raised1. Our Trust is a discretionary Family Trust, so I will discuss any concerns the ATO may have with our accountant.2. We plan on ensuring we pay market rent and that everything is "above board" legally, to ensure th…[Read more]

Hi Terryw,I have read several of your posts and very glad you have have commented on my post.What are your thoughts on the Trust purchasing our next property and my husband and I renting it. The Trust would purchase it as an IP and negative gear to reduce tax payable? Does this makes sense?  

Hi JacM,I was aware that the interest is not a taxable deduction due to PPoR, however it is still a tax benefit as I can claim approx $5000 – $6000 in out of pocket expenses per year on loan repayments, rates & agent fees etc.     

Hi cmason,Thanks, I thought this may be the case after reading some of the other forums. So this leads me to my next question. If I keep my IP as my PPoR to satisfy the 6 year rule, what do I consider the home that the Trust purchases?  

Hi JacM,The first house will remain an IP and I will be negative gearing it to reduce my personal income after Trust income distribution (it is in my name only). I will definitely check the residing requirements on the 6 year ruling with my accountant – thanks