‘monies can also be distributed to beneficiaries overseas with nominal tax paid (about 10%). the best thing is that the monies dont have to be physically transferred; they can still be retained in the Trust with the transfer being shown as a book entry.’
i am probably a bit silly asking this but i’m having trouble understanding this concept. what do you do with the money if you arn’t actually distributing it? surely you can’t leave it in the trust forever. how do you balance your books if you enter a transfer but still have the funds? does your trust get audited annually? are you sure this is not tax evasion? if or rather when you take it out of your trust structure, won’t this be obvious to the ato where it has come from and that you havn’t paid the correct cgt?
if this is legit, i would love to get it working for me, i have a number of trusts for different things and this thread could save me big $ over the years.
my only knowledge (and i’m not even close to an expert) of how to lever the cgt is as home owner – no cgt, 12 mth going concern business 50% concession and defering the cgt by buying a similar business when you sell.
i have also heard of someone setting up a co. for property developing and treating any capital gain as income and paying the 30% co income tax. have never confirmed that one though. perhaps someone else could let me know.
oh and there is super also……
this seems to have gone from a question about unit developing to a discussion of cgt. i guess it’s all relevant.
regards john j
michael,
read your reply on 24th and agree with everything said – good advice.you must have a bit more money than us though. i would love to know what you pay in consultants during design and construction. an architect, quantity surveyor and project manager for a duplex/units/townhouse. they’ll eat you alive on a small project like this. i’d be suprised if you get any change from $30k.
start with a building designer. they deal with council planning schemes on a daily basis and can design the building and offer contract administration during the construction stage for about 1/4 of the cost of the arctitect alone.
regards john j
Thanks guys,
Great info i am taking everything on board have purchased a block of land with old house 1012sqm.
Would like to keep house but unsure how to go about iT as it needs about $15,000-$20,000 to repair and it may cost the same to move it onto an other block.
It has some water views and is less than 2 kilometers from a town of about 35,000.(QLD)
What would you do?, any advise would be appreciated.Dom[biggrin]
It will cost you less in total if you leave the house in place and add one more, but this may impact on the value of the final development ( you only need to build one, and not two new dwellings, but the value of the new dwelling located next to the old one may be lower than if it was next to another new one )
So depending on your financial circumstances, I would suggest removing / relocating the existing dwelling and building two new dwellings on the block.
KP
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