perhaps if the ownership is partitioned, but you would need good legal advice on this.

The property couldn’t be mortgaged.

why not just see a lawyer about both?

Why would a trust not be possible?

Of course a single person can create a trust structure, you just have to consider all the options. You can ask an accountant about the tax aspects but trusts are complex legal devices and only lawyers should advise on them.

The first thing you should consider is land tax as often once this is considered the…[Read more]

It would be subject to CGT because you cannot claim the main residence exemption for vacant land, unless you build within 4 years. But this doesn’t necessarily mean any tax would be payable – depends if there is a profit after costs.

The fact that the money came from the sale of the main residence prior to this is irrelevant.

last time I tried finance for one of these was over 10 years ago and the mortgage insurer would not allow the loan on valuation. They also didn’t recognise the extra rent payments as a credit for the tenant.

But these days many lenders lend based on the valuation where the contract of sale is has been exchanged more than a year ago for off the…[Read more]

I could help on the structure and tax side, but I don’t practice property law so cannot really assist in that area, but I know a bit. I am also conducted some lease options myself in the past – but would not do again. I am sydney based.

Lewis O”Brien used to be the lawer to go to for these things.

When the tenant wants to buy the property (ie become legal owner) they would apply to a lender, just like normal. But the lender will need to know the details such as they have been paying extra rent which goes towards a deposit and that they will be buying under market value. These sorts of things are difficult to finance unless the LVR is under…[Read more]

Depreciation has 2 aspects – capital allowance for building works and fixtures and fittings.
It is only capital allowance that reduces the cost base.

Also keep in mind that legislation is worded in such a way that even if you did not claim the capital allowance it is used to reduce the cost base if you could have claimed it.

I don’t know – you will have to ask the person that advised you. If they think you do need a valuation ask them for the legislation which requires this.

Basically yes. That $2000 would be capital of the trust and could be distributed tax free.

This is why careful record keeping is essential, and this is even more important for when you die because the executor and/or beneficiaries need to find this information.

when it has increased in value enough

yes

the cost base is basically what you pay for a property plus the costs you haven’t claimed – stamp duty etc.

When you inherit a property you generally inherit the cost base of the deceased. So it is as if you are them. What they paid for the property, their stamp duty etc is what you are considered to have paid for it.

The clock only sets to zero…[Read more]

1. Exempt from CGT if sold within 2 years. Thereafter if you rent it the cost base will be the value at death.
2. Cost base will be his cost base.
3. cost base will be his cost base.

Confirm this with your tax advisor as I have made a few assumptions.

You need to speak to a lawyer – about stamp duty and CGT which would be triggered if the ownership changes.

Don’t you need the diploma course now, and not just the Cert IV?

AAMC is where I did mine. Good place to do it.

I would probably just recommend the cheapest place you can find as the course itself is not something you can really rely on for knowledge. You get that when actually doing.

I’ve never looked into this, but a colleague did a conveyancing matter where the vendor used a put and call option to delay entering the contract (but lock it all in) and when asked why they stated for CGT reasons.