hey all i am currently building should be complete around oct this year if it isnt held up any longer (than it already has been
).my wife and i have decided that it will be more beneficial for us to turnit into an ip as the rental income it will generate will make it cf neutral or maybe slightly cf +… i understand that i will need to live in the property for 6 months as im a fho to avoid the cgt when selling and i will also be able to claim a percentage of the interest back at tax time … i was just wondering if an accountant or someone in the know can advise me of any other tax benefits/ implications of doing this ?
i was also wanting to talk to an accountant that is experienced in propertyinvesting about trusts and if it would benefit me as ill soon be a father and sole bread winner in my family as i know with trusts you can send all monies to benefacts to reduce taxes paid… which trust would benefit me and the costings…
thanks in advance,
benBen, if you own the land already then it is largely too late for a trust now. Transferring it would mean stamp duty.
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
yes the land is already in my name
… i guess this wont be to much of an issue atm and i guess at a later date i can incorporate the property into a trust? once i have a larger portfolio ? im also guessing my accountant would do this ?Nope, this is a legal issue. Can only be done by a lawyer.
It may be better to just consider a trust for future purchases. Also a lot more to consider other than income tax. If land is in NSW then maybe the land tax will be more than you would save in income tax each year.
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 guess this wont be to much of an issue atm and i guess at a later date i can incorporate the property into a trust? once i have a larger portfolio ? im also guessing my accountant would do this ?You must be logged in to reply to this topic. If you don't have an account, you can register here.
