Search results

Uh... good point! How about better from a tax point of view?

Hi there, Which is better out of these two structural options: 1. Investment Bond (or Insurance Bond) 2. Your own Company (not a trustee company) with your Discretionary Trust as a shareholder of the Company Would be interested in people's thoughts on this... Thanks.

I got one of these and did the opposite to you, certainly not a pre-requisite to financial success though as you suggest.

Hopefully you will get it tenanted soon then. If not, I'd give it the flick and focus on getting the debt against the PPOR down ASAP. The equity stored here is what will set you free eventually (but only if it comes with a change in expectations of where you should live down the track)...

Marc's PPOR will likely only be a holiday rental, so it maybe better for him to just take on a boarder or two?

Marc... is it time to sell this IP? (seeing as you can't sell the business) Want to put up a link to it, someone else who knows the area may give you some pointers on this? Even if you clear 50-100k after CGT (which you won't have to pay till later next year anyway) it will give you some...

Agreed. I'd only put commercial property and shares in a DT, and nothing fancier than that.

I think some of the promoters of this structure have now moved on to pushing Land Tax Unit Trusts instead... which will be a great money earner for them till the rules change again! Accountants and lawyers with strong biases and vested interests are simply not the best people to give overall...

Sadly for some even selling may not be an option if they have continually maxed the LVR on their properties to buy other ones as CGT will be calculated on the original cost base.

Hmm... and expose yourself to paying capital gains tax twice? Once at redemption and again when the DT decides to sell later on?

My accountant said a capital payment to a trust and gift to a trust are the same thing. Which are both different to a loan to a trust.

Thanks Terry, so what is the difference between a capital payment to a trust and a gift to a trust... ?

Can't you just do a ''capital payment'' from the beneficiary to the trust? So here you are not charging any interest to the trust and the trust can return this amount back to the beneficiary at a later date (with no tax implications)... ?

Thanks Rob.

Thanks Rob, how about a guarantee only without putting the security up as well? If the security is used as well (eg. shares if the trust buys shares), then proceeds from any sales may need to go to repaying the loan first I guess?

Does the trust have to guarantee the loan as a guarantor? Or do you create a mortgage document?

What is the alternative to this then?

btw Terry, you have some awesome qualifications, but seriously the worst website I have ever seen! (PS: checkout WordPress)

Yes I believe so. We just discussed this a few days ago: http://somersoft.com/forums/showthread.php?t=90187

Thanks for the replies. I've checked the loan agreement and sorted this out. Thanks, this is what I am doing, no net tax benefit to me.