All Topics / Legal & Accounting / The Wife Needs Advice – Family Trust & Purchasing Real Estate

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of CeeDeeCeeDee
    Participant
    @ceedee
    Join Date: 2010
    Post Count: 4
    January 9, 2010 - 12:10 am

    Hello All,
    Am new to this site but looks like it could be of great benefit .  I am chasing opinions!

    My husband and I our selling our existing home (main residence) and looking to purchase
    a new home with the idea of having a lower mortgage with a 15 year term.  We have a holiday home
    which we use (doesnt earn income as we use it, but can). Both of these properties were purchased in
    joint names.

    We now have a Pty Ltd company as Trustee for our Family Trust and I wonder if we should purchase our
    new home in the Family Trust instead of joint names. The Pty Ltd only has 1 vehicle loan and no other "debt" as such. 08/09 was our first real financial year for the business.

    Any words of advice would be appreciated, husband leaves it to wifey and I feel a little out of my league, we do have an
    accountant who we will not have much longer as we feel he is not too patient with us "novices" and we never fully understand what he says anyway

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 9, 2010 - 4:57 am

    Hi Ceedee

    I assume the new property will be your main residence so limited advantages in buying it in Trust using a Corporate Trustee.

    If you buy the property in your own names then you will get the property will be exempt from CGT shoud you sell it in the future and assuming this is your only PPOR. The property will also be exempt from Land Tax.

    Financing a loan with income from a Company that has only been trading for 12 months may however prove a little harder so you might want to think about this before you proceed much further.

    Richard Taylor | Australia's leading private lender

    Profile photo of Grow SMSFGrow SMSF
    Participant
    @evolve
    Join Date: 2009
    Post Count: 66
    January 9, 2010 - 5:45 am

    Agree with Richard – no benefit having the property in the Trust.

    How is your business set up?  Do you operate via the Trust or the Company (i.e. when your soon to be ex-accountant did the 2009 tax return for your business was it in the name of the company or the trust) ?

    A general tip is to keep any valuable assets (such as your house) totally separate to your business.

    Grow SMSF | Grow SMSF
    https://growsmsf.com.au
    Email Me | Phone Me

    Self-Managed Super Fund (SMSF) Specialist Accountants

    Profile photo of CeeDeeCeeDee
    Participant
    @ceedee
    Join Date: 2010
    Post Count: 4
    January 10, 2010 - 12:00 am

    Thanks Guys

    Have investigated further and agree!

    Cheers

Viewing 4 posts - 1 through 4 (of 4 total)

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