Seriously looking into establishing a family trust with company as trustee (have 4 kids). I have spoke at length with accountant & mortgage broker of pros and cons. I am selling up a couple of properties outside of fun currently costing us $100pw) to inject instant $100K-$120K towards new investments, have PPOR with $400K equity. What is the best way to achieve neutral to positive cash flow initially and reuse equity – was thinking reno, subdivision or house and land packages? Can depreciation still factor, yet it isnt apportioned as income but retains in fund is that correct? Any guidance would be great. Looking to ultimately hold 10-15 properties in next 10 years. Thanks in advance
What do you need to know?
Depreciation is claimed by the owner of the property = the 'trust'. If you trust is running at a loss, which it probably will in the early years, then you cannot offset private income and will, ideally, need to direct other income into the trust to offset this.
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
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