All Topics / Help Needed! / sub division question

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  • Profile photo of dam06dam06
    Member
    @dam06
    Join Date: 2011
    Post Count: 2
    April 10, 2011 - 7:28 am

    Hi All,

    I was wondering if someone could help us, we are considering knocking down our home and building 3 town houses. But are not sure what is the best way. Should we transfer into a family trust, or should we own a townhouse as individuals and hold for 12 months to minimise the CGT liability.

    Can we own a property each, ie Mr owns one, Mrs owns one and children own the other. And could we each live in a property to take the owner occupied with no capital gains tax.

    We currently live in the house and have lived here for 4 years. The house cost 340K, and the redevelopment will cost around 500k. Each property would then be worth 420k.

    We would appreciate any advice, be it from completing this type of project to tax advice.

    Thanks for your time.

    Darcy

    Profile photo of Ryan McLeanRyan McLean
    Participant
    @ryan-mclean
    Join Date: 2010
    Post Count: 547
    April 10, 2011 - 9:26 am

    Just to clarify.

    Firstly, how many people are on the title of the current property? This will affect what you can do. You can call them by fake names if you are scared about privacy.

    Secondly, how many people do you want to transfer them into? What is your end goal? Do you want to sell the properties, have one each to live in or rent out, keep all three as a joint venture, sell 2 and keep one as a joint venture. Let us what wheat your desired outcome is then we can better help you with a strategy.

    Ryan McLean | On Property
    http://onproperty.com.au
    Email Me

    Profile photo of dam06dam06
    Member
    @dam06
    Join Date: 2011
    Post Count: 2
    April 10, 2011 - 12:52 pm

    Evening,

    There are 2 people on our title, my wife and myself.  We have three children all under 5, and am not sure what can be put into their name without penalties for high earnings. We also have another 5 properties, and would like to protect them from law suits. The problems with them is that they have all had high growth and the CGT is very high to move to a family trust.

    The end outcome is to pay as little as possible to the ATO. We are happy to keep for as long as required to reduce the amount payable and are happy to live in one or all of the properties (if it helps).

    We are also considering selling the house to a family trust then dividing the property up. Or whatever is the best option. We would just have to wear the stamp duty to sell to a family trust first.

    Thanks

Viewing 3 posts - 1 through 3 (of 3 total)

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