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  • Profile photo of SnowLionzSnowLionz
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    @snowlionz
    Join Date: 2014
    Post Count: 3
    September 22, 2014 - 11:01 pm

    FYI: Another thing with trusts, although negative gearing cannot be claimed, losses can be later offset again future capital gains (reducing CGT). Also in a trust, income can be distributed amongst beneficiaries – this means that you can minimise income tax on profit from investments.

    Hence the disadvantages of trusts are offset by its advantages – I will definitely be purchasing under a trust.

    Kylie, thanks for the info about tax free threshold for trusts in QLD.

    Does each trust get it’s own tax free threshold in QLD (ie 3 trusts would receive 3 x $350,000 in tax free threshold)?

    Profile photo of SnowLionzSnowLionz
    Participant
    @snowlionz
    Join Date: 2014
    Post Count: 3
    September 22, 2014 - 2:54 pm

    Hi All,

    Thanks for your replies. That answers my questions about land value calculation.

    I went to a seminar and they said that as an individual, I could purchase 1-2 properties in each state, taking advantage of the land tax threshold for each state, hence paying no land tax if I diversify into each state.

    This seems like a good idea, but it does not provide any asset protection compared to properties under a trust.

    I think I just need to weigh up the advantages and disadvantages of purchasing under a trust and do that in the context of my situation.

    Thanks

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