G”day evryone in IP land
Would anyone be kind enough to give me some advise on which trust would suit me I have a family wife and two Beautiful girls (only Joking Honey) under 5 years old and i have 1 PPOR and three investment propertys. My wife and I both work and have an income of approx 80,000 per year and the propertys combined are worth roughly 800,000. And is it possible to rent your own home through the trust while you are occupying it and claim tax expenses? Any help would be appreciated.[
]Comdom
You can’t just transfer you properties to a trust. They will have to be sold to the trust, this means CGT and stamp duty implications. Do some figures, it may not be worth it.
Really you should be talking to an accountant about this. You would probably need a Discretionary trust or a Hybrid discretionary Trust.
Terryw
[email protected]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
I’m in a similar position to you, however looked into the trust structures just before my last purchase, and ended up buying number 3 in the name of the trust. So better late than neva to set it up for future purchases, and can also then assess whether it’s worth the expense to transfer the existing properties to the trust.
I spent an hour with a good accountant and was well worth every cent.
Cheers
By the way, ended up with a Discretionary Unit Trust with a Family Trust as one of the beneficiaries, but really need to get advice from an accountant as to what’s best for your circumstances cause gets quite complicated.
Hi,
Thanks for the information it was very usefull.
Dom[]hey terry
i don’t think you are right, i believe the trustee can hand over assett to the trust in his capacitee as trusttee. It doesn’t constitute a sale as the property is still in his name. Hence no CGT/stamp duty etc.
A discretionary trust is not a legal entity as is a comnpany, all my properties are in my name but i sign a declaration (just one i wrote up)saying they have been purchased for the family trust.
what do other think am i wrong?
westanTHANKS WESTAN,
I HOPE YOU ARE RIGHT[?][?]
Westan
I think that if your trust was set up before you pruchased your properties then it will be ok, but don’tthink you can just assign existing properties to a trust without actually selling them to yourself as trustee for the trust. But I am not a lawyer or accountant so could be wrong. I would like to know though as I have some properties which I could do this to. Did you have any advice on this?
Terryw
[email protected]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
Thanks for your help kind people I was hoping someone might have done this whithout needing to repurchase your ip including your own home but you a right in asking an accountant or solicitor for this question because it is a complicated process.[
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