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Hi Terry
Another question for you
It appears that Family Unit Trusts are eligable for the Land Tax Threshold.My question is can a Discretionary Trust own the Capital Units of a F.U.T while my brother and I etc own the Income Units? or can a discretionary trust own all the units? I'm not thinking that they can as the beneficiaries must be family members.
Some Fixed trusts also qualify, I'm wondering if we had a Fixed Trust could the units be owned by a discretionary trust maybe?
This is really hard, all I want to do is set up a trust that protects the assets from litigation, divorce etc and still qualify for the land tax threshold. They don't make it easy do they.
Regards
SteveThanks Terry, that helps
Umm, question 3? My question was double ended. I'm taking your NO to mean that YES we can do our tax ourselves if we went ahead with our structure of Company and Trusts?
Also I forgot to ask you, since any losses are trapped indefinitely, could we use them to offset CGT if the property was sold when still negatively geared
In regards to question 6: does this mean that the beneficiaries are eligable for the 50% CGT deduction?? I'm a bit confused about this particular point.
Regards
SteveHi Terry
Sounds like you know your stuff.
I'm Anthony's brother in the question above and have a few questions myself.1: I understand (or have been told at least) that negative gearing losses are locked inside the trust until such time as the property becomes positve geared. If this is so, how long have we got to claim back these losses before they expire or do they sit there indefinitely?
2: Have the laws changed in NSW recently concerning land tax and trusts? The reason I ask this is after doing research last year we considered setting up the structure as follows:-
Company as Trustee –
PropertyInvestors trust (unit Trust) as owner of property (as at that stage P.I.T's were eligable for the Land tax threshold) –
and finally a Discretionary trust as the sole units holder of the P.I.T.
That way it was protected, was eligable for Land Tax threshold and we still had the power to channel funds to the most beneficial benerficiary. (for tax reasons etc)
Does this all sound right to you?3: Do company's and trusts HAVE to use an accountant at Tax time or can we do it ourselves if we know our stuff?
4: Which states are best to buy in, Land Tax wise, if we decide to go with a trust.
5: If we decide to use a trust isn't it best to use it from the start so that down the track we don't have to pay AGAIN to have the Deed transfered into the trusts name.
6: This 50% C.G.T discount that I read about in another post is something I was unaware of. Would this apply to the above structure.
Thanks for answering our many questions about this issue, it's greatly appreciated.
Steve
