I’ve had a 3 bedroom unit counted as a 2 bedroom because the 3rd bedroom was a converted living room. Than taking it to a different valuer it was valued as a 3 bedroom.

A trust will have a trustee, beneficiaries and property. Not sure what you mean by ‘holding company’ but a company can be appointed as trustee and/or as a beneficiary.

The income of a trust must be distributed or the trustee will pay the top marginal tax rate. If you are the trustee or director of the trustee company you can control where the…[Read more]

Depends on the circumstances. If your main residence becomes income producing the cost base will be reset to the value at that time. When you sell it will be subject to CGT, usually based on the % you rented out.

But you may be able to claim or depreciate furniture, claim a % of all costs etc. It may help you save tax, produce more income, which…[Read more]

Trusts are legal devices and although many accountants set them up you really need a lawyer. A trust is just a relationship between various parties involving property and non lawyers cannot give advice in this regard as it is legal advice. If a non lawyer does set one up they will use a deed written by a lawyer, but you need advice to go with…[Read more]

I can see many legal and tax issues to consider. The developer will be developing land he doesn’t own. Does this mean you will be giving your land as security?

As Tony says you may lose the main residence exemption and the CGT exemption because you are now possibly in the business of developing the property. CGT may not apply in this situation…[Read more]

If that is the case probably not.

give them notice to vacate?

Count are a large group, so it would vary from branch to branch. They tend to be tax agents/accountants and financial planners which can be good.

Land tax is state legislation so it is completely different from state to state. I am not sure about WA off the top of my head.

Great tip Steve!

Wayne, its not the price of the property that determines land tax, but the value of the land. And it is $482,000 for 2016.

I am a lawyer based in Sydney specialising in trusts and I charge $1650 to set one up including legal advice.

I can save you some money and talk you out of using a trust by asking one question – or 2 actually:

Will you be buying in NSW? and, if so
Are you prepared to pay 1.6% per year in land tax?

Yes 2 should be just ‘incidental costs’ and would include costs on acquisition and disposal.

Probably taxed on revenue account. GST and tax on the profit.

When calculating capital gains tax we need to know what the cost base of the asset that was sold is.

The capital gain will be the sale price less the cost base.

To work out the cost base we need to know the costs for the 5 elements described under Section 110-25 of the ITAA 1997 which are:

1. Money paid or required to be paid for the asset.

2.…[Read more]

I haven’t read any of the replies so apologies if this has mention mentioned above already, but I think you could have set this up better in several ways.

1. Just one name on title and loan.
This would have allowed you extra strategies down the track, improved asset protection, improved serviceability overall and have saved you tax.

2. Paying P…[Read more]

In your example it is the first one that is correct. Work out the capital gain first and then apply the 50% discount. This figure = about $36k in your example is added to your other taxable income.

Yes stamp duty could apply in either case, including removing or adding a beneficiary of the trust.

Don’t forget to consider CGT. But generally this is easier going.

I am not an accountant, but a lawyer specialising in ‘structuring’.

Not much you can do really. Have you sought legal advice?

You should never give a guarantee if possible, and if you need to then just one person should.