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Ps. You can rate your own posts too (that was me giving myself the thumbs up above).
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
HI,
Sorry I havne't read the posts in this thread so some of these things may already have been discussed.
I am finding it much harder to navigate than the old forum. Some difficulties are:
1. No button to mark all forums as read
2. Replies show under the post replied to and not at the end, making it difficult to navigate.
3. No automatic notification of replies to threads where you have already posted.
However, I do like the "rate this post" button!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
James sure knows his tax, check out
http://houseofwealth.com.au/home/
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Best to take your tax advise from a tax agent.
There is the market value substitution rule which which means that if you are not paying market value for an asset from a related party then the CGT will be calculated on market value. So the first element of the cost base, for CG, will be the value and not what you paid for it. see s 112-20 ITAA 1997
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Before you do anything best to get legal advice as there are a few tax and asset protection strategies you could implement.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Avoid 1 because of the tax issues – very dangerous.
2. Is ok, but is a separate issue. You would need to consider in conjunction with 3.
3. Is the way to go, ie a separate loan for the equity extraction. The rates are high though.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
dangermouse99 wrote:Hello AllMy accountant eventually setup a hybrid land trust ($3300), i really still struggle with it all, but just trust my accountants judgement. I just bought land in QLD and plan to put a house on it, it will be positive cash flow.
I have a wife who works part time and 2 kids, combined salary just under $150K and plan to buy more IPs down the track
I had drama's getting residential lending through CBA and eventually got commercial lending after alot of headaches
But I want to know some more, like teh tax implications, especially for my wife who wants to claim Tax Benefit A & B as I thinking being the lower income earner the asset i belive is in her name. what impacts will it have on us both
Why wuld he choose a hybrid trust and not like a family unit trust with the kids? And is this still going to work OK well considering the extra bank charges I have to pay including a considerable higher interest rate, all these costs and extra difficulties with the trust have been considerable.
I would like to know the pro's and cons of this for my own understanding. Can this be explained to me please as my accountrant is difficult to get a hold of and it be good to get unbiased opinions.
Many thanks
Dean
Dean, its a bit late to be asking these questions if you are already purchased the house.
Not sure what the reasoning behind using a hyrbid trust is, especially if the property is positive cashflow.
Not sure what you mean about "the asset in her name" too. Who are the unit holders and who is the trustee? Who borrowed the money and what for?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Cunnin wrote:Just wondering if a Corporate trustee (company name) can be the same as the trust fund if possible eg XYZ PTY LTD trustee for XYZ family trust??Yes names can be the same. But it could be an idea to have different names to avoid confusion. I have one trust with the same name as the trustee company and it is a bit confusing when searching documents and computer files etc. When I get statements from the bank I have to think is it for the trust or the company etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Ella,
What is the question?
A spouse can buy out the other spouse's share, and if the property is in VIC it can be done on an investment property without stamp duty. CGT will apply.
It may be worth it to knock out the non deductible debt and to rearrange everything. ie a restructuring exercise
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Here are my answers
1. Legal ownership changes at settlement, but you would have a beneficial interest in the property at exchange.
2. In NSW the stamp duty is payable within 3 months of contract date or at settlement whichever is earlier
3. This would be treated as a sub sale so both you and the new person would pay stamp duty – unless a family member under some circumstances.
4. No min
5. Both pay
_________________
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Some incorrect information in the answers above. Make sure you get proper legal advice before signing any contracts.
Although stamp duty may become payable at settlement or within 3 months you actually become liable for it on exchange of contracts.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Office of State Revenue would request you get a valuation done for stamp duty purposes. This should satisfy Centrelink too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Just stumbled on a recent QLD legal case involving adverse possession.
Eckford & Ors v Stanbroke Pastoral Co Pty Ltd & Anor [2012] QSC 48
see summary here http://www.lawyerassist.com.au/2012/05/07/cases/eckford-ors-v-stanbroke-pastoral-co-pty-ltd-anor-2012-qsc-48/
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Why do you want to find these properties?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thats right, just employ a quantity surveyor.
Also note that you can keep your home CGT free for up to 6 years too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Tom
Yes, a percentage of the loan would be deductible but the problems arise when a person tries to pay down the non deductibe portion. If it is a mixed loan then any repayment to the loan will need to come off the deductible and non deductible parts in proportion to the loan mix. This is a mathematical nightmare and not tax effective as you would be reducing your deductible interest with each repayment.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
There is a place to put their income and it may affect your income tax by increasing your rebates if your spouse is on a low income,
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
leyashyash wrote:Hi,I have a PPOR valued at 350,000 on which I have a mortage of $200,000.I have been staying here for 4 years. I am looking at buying a investment property valued at $500000. I plan to rent this IP for 6 months and then move into this property and convert my current PPOR as Investment property.
Would this be a good plan? What are the drawbacks of going this way?
Thanks
One draw back is that your new property will be subject to CGT
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Look at Nathan Birch.. He appears to be well on the way to doing what Steve done and is doing it now.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Tax returns are done separately but there is a little section regarding adding your spouse and her/his income.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au