So it seems tax is your main concern.

Accountants can only give tax advice. Assignement of a contract or recission etc is legal advice and you need to talk to a lawyer – not a conveyancer.

I don't know if your trust is valid. The internal structure of the trust is important. There could be some asset protection issues with the way you have set it up.

What do you mean appoint a successor? Who has this power? How is it exercised – have you done it yet – whether appointing a back up appointor by deed or by your will. There is a recent case involving a trust and an experienced lawyer who had himself appointed new appointor of a trust controlled by his dad. Dad later died and the appointment was invalid – someone else took control of the trust.

Sounds like you are manipulating the rent to break even – is this arms lenght? Why pay rent? Why not do it arms length and have the trust make a loss? Why do you think you cannot make a loss if living there? Do you have a private ruling? Whats the reasoning?

How does stamp duty in SA work? On the deposit? In NSW you pay stamp duty on the contract of sale.

Does duty result if you change names on the contract or if the person that settles the contract is different to the one who signs the contract?

I am a bit concerned you are using an accountant for advice, except for the rent issue all of this is legal advice.

You can do with your money as you please, but the interest on the $52k loan will no longer be deductible.

Smoke and mirrors!

What is her definition of a vestey trust?

Lawyers make more money than the original cost would have been by fixing up DIY mistakes! I guess accounts too. Amending 2 to 4 years of tax returns for example.

But how do you know if it is going to be an easy conveyance?

Conveyancers are not qualfied to advise in other related areas either – sucession issues, asset protection, bankruptcy.

What if it turns out to be the executor of a deceased estate…

No CGT likely as this seems to be a profit making enterprise rather than a long term investment. Profit likely to be taxed as income. Since new property involved GST would be on the sale price – possibly able to apply margin scheme

If you are talking about that company (C….) then I believe they are not tax advisors and don't advise, but their method involves capitalising interest, but not claiming the interest on the capitalised portion.[/quote]

Terryw….yes that's the one I'm on about. Does this mean that they do it in a legit way? 

I have substantial savings and this was the reason for my initial enquiry…..I want to be able to over time (hopefully) … use property to create financial freedom and wanted to know the thoughts on this way of doing business. 

[/quote]

Hi Keenan

I imagine they would be doing things properly. but I am not sure of the details . I think they refer people to Bantacs for the tax side and Bantacs are legit.

If you have substantial savings there are other strategies to consider as well for added tax and asset protection.

You might also want to look at

TD 2008/27

http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD200827/NAT/ATO/00001

The principles governing the deductibility of compound interest are the same as those governing the deductibility of ordinary interest

PBR 69725

PBR 78123

PBR 94265

PBR 81797

PBR 93707

PBR 94313

PBR 93035

PBR 1011345133229

1. Standard government charge – probably on your loan agreement

2. You can pay the fee into the loan and this owuld be the same as if you paid it in cash

3. no

Thanks Paul. Rick doesn’t actually say much does he.

And interesting what the flow on effect will be.