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Dale, If I may modify this scenario a little further. Let's say that in the Trust also has other assets that are generating a loss of say $20K. Would that mean that now we have: $60K - $10K(costs associated with sold IP) - $20K(other losses in Trust) = $30K So now only $30K is...

Sunstone, The links are great. Thanks :) I tried to look in the archives with no luck, obviously I must have been searching for the wrong words. I'll have another go and this time I will not stop until I find something. :D Kind Regards, Orion

Glebe, Let's say that they are in the same tax bracket. Seeing your question, I think I should have been clearer in my question. Oops :D The question that I wanted to ask was how does the distribution of money in a HDT work when there is a mixture of assets in the trust. Some owned...

Hi all, I was wondering if someone could clear up an issue that has been on my mind for a while, which I can't seem to resolve by myself. Need to pick someone else's brain, I think. :D Consider this situation. You have two properties in a Hybrid Trust and have two beneficiaries (A...

Hi all, I have been looking at a place where the garage can be converted to granny flat, which in many ways is similar to the initial post, however assuming that the council approval to have a granny flat is fine, how would such a place be rented? :rolleyes: The land cannot be subdivided...

Chap, Sorry to add to your confusion, but when I was setting up my HDT, I saw the option of getting two different types of Hybrid trusts. :confused: Firstly, a Unit trust that had a Discretionary component in it. This was the type of trust my local accountant was aware of. Secondly, a...

Thanks Dale, This approach makes structuring your bank loan for investing very neat. :) Kind Regards, Orion

Dale, What about the interest that needs to be paid for the LOC loan itself? Does that interest have to be paid from your own money (ie after tax dollars) or can it be paid from the LOC itself, therefore making the LOC loan grow? (I'm thinking of a situation where you might not have a...

Perfect, The unit trust can be reused as many times as you want. Also it can have no assets as well. This means that if you are between projects, the trust can be empty, but rememmber you still need to do a tax return for it every year so there are costs involved with keeping a trust. Orion

Dale, Thanks for the answers. It has cleared up my thinking about things. Now, I have to finish this beer and get back to work. :eek: Wish I didn't have to. :rolleyes: Orion

TryHard, When wages fluctuate or the investment return fluctuates (like shares) when it's difficult to pick the person who should buy the units and I think that sometimes you just have to accept that your tax return will not be optimised, but hack, what's the problem in trying? :) Now to...

Tryhard, Long post, but good. :) First of all, congrats on the soon to be new beneficiary. :) We are trying for one too, but had a recent setback. :( Will try again soon. Thanks for the link to the web site, it looks good. I think that a loan to a company will work in this case. This is...

Dale, I have to say that this is a great thread. :) I've been thinking on how to get money from my LOC into our trust too to buy shares and have only though of lending it to the trust, which would still allow me to claim the interest in my tax return on the LOC. It didn't click until now...

Fish, When you move money between the trust and your account, you need to have a money trail otherwise you'll have problems with claiming interest on it. There's two ways you can do it: 1) gift it to the trust (ie you transfer some funds to the trust account). It seems that this is what...

Fish, I'll tell you what I did, which might help you out. Let's say I wanted to buy a house worth $200K using my HDT, but I could borrow $300K ($200K for the house and $100K in equity in current house). My HDT made $300K worth of units available, which I personally bought. That means...

See Change, Thanks for your answer. I'll visit the ATO web site for more info as you suggested. Thanks. :) Orion

Hi all, It's tax time again and I have a few general questions on depreciation of items in an IP. 1) Lets say you had a dishwasher that the tenant wanted to buy from you. You had it for 5 years and have been depreciating it for 5 years. If you were to sell it, do you claim the remaining 5...

Thanks guys, I was thinking to try an accountant in Sydney, but after your comments, I think I'll try Dale. For such a small cost of flying there, I'm sure it's going to be worth it. :) Orion

GeoffW, I'm in the same situation where I'm in Canberra and have been going to an accountant who doesn't really know much about trusts, so this year I'm planning to change accountants. So if you're dealing with an accountant that is in another state, do you travel to them every year or do...

Dale, If the property is owned by your trust, how would you document in your trust minutes the extra expenditure? I assume that this is only possible for the beneficiaries in the trust. or is it? :rolleyes: Kind Regards, Orion