Recent content by Dingus

Thanks Paul for that. Sounds like its a more complex issue than on first looks. Will discuss with a tax advisor and consider options.

Cheers guys for the feedback. No prior returns as this is the first tax return in Australia... I am a Australian tax resident now but have existing rental losses quarantined in my UK tax return... essentially carried forward foreign losses. From a CGT perspective, I have 5 years until I...

Hi all, I have searched the forums but with no avail so I was hoping you guys could help me. I have a scenario where I have carried forward losses from a property that is located in the UK (due to no negative gearing in the UK tax system). As I am now living as a resident in Sydney, would...

I considered a unit trust for my property purchase in QLD (as I could borrow in my own name to purchase the units), however with the duty that applies on ownership transfers, I settled on a discretionary trust as I also had savings... Looking at the options for future income distribution and...

I have a friend that I used to work with who has set up his own accounting business locally in Brisbane. Good guy and has been in the tax world for quite some time and is quite knowledgeable around property, structuring and small business... Details below: http://www.terryca.com.au/...

Isn't the OP asking about the deductibility of the interest on the purchase of the shares, which in this case, I would have thought you could get a deduction as the loan was used to purchase income producing assets?

I am a qualified accountant but in Banking and Finance so unfortunately I have limited dealings with the ATO, hence my initial question. I think kept clean of any other personal funds, it would be easy to maintain the nexus between the offset funds balance with the refinanced loans. I think...

Thanks Peter. The only reason I would keep in offset is that it gives immediate access to the funds. I am quite disciplined and detailed when it comes to segregating financial matters (I am an accountant by trade), so the risk in contaminating funds are low to non-existent. But good to...

Hi all, There has been a bit of discussion on this however I just want to clarify for tax treatment. I am looking to purchase another IP soon and have refinanced my current IP to unlock some equity so I can use these funds for a deposit. Lets say I have $100k that I am drawing down...

If transferred to a discretionary trust would you be immediately up for land tax (given discretionary has no threshold)? Obviously DTs are good for income distribution but its a chunky cost to pay (land tax) for this privilege?

Continuing on the topic of Trusts. Can a Unit Trust be converted to a Discretionary Trust in time (once units have been redeemed)? As the trustee will be on the title for any property investments, I am assuming no CGT/Stamp Duty impacts? Only Land Tax as I believe discretionary trusts have no...

I am still working through but that is the plan... the only unit holder will be myself and/or a company with no discretionary element and units measured at NAV. But will need to research further as to whether I can utilise my land tax threshold in NSW, and how a company as joint unit-holder will...

What I mean by borrowing is that I have existing equity in my properties in my own name which I am drawing down for the purpose of buying units in the unit trust (which will house a property and generate income). As I have effectively borrowed again (loan with the bank/drawn upon equity -...

Thanks Terry, personal lending won't be an issue as I am drawing down on existing equity for deposit... but I will be borrowing within the Trust for the property itself. Can you elaborate on the interest deductibility (partial depending on trustee income and capital discretion?). Does this...

Just been doing a bit of research for an investment vehicle and am looking at Hybrid Trusts... seems to mix the benefits of discretionary and unit trusts. What are everyone's opinions on Hybrids (apart from increased cost of setup and increased ATO scrutiny)? For me it seems to allow...