Legal Eagles please.....

[bagg]

Hi,

My partner and I bought (and settled) a house in May 2002 which we live in. After signing we found out about placing PPOR in a trust as an IP, which we would like to do. Thus we set up a trust with a view to transfering it after we saved again for the stamps etc. I did not view the original contract on the house and assumed that it only had our names on it and not "an/or nominee" which would enable us to place it in the nominated trust.

While cleaning up today I came across the original contract and it does have my partner's name but also "and/or nominee" on it. Can we now transfer the property to the trust without triggeing CGT/Stamps all over again. I'm under the impression that this can be done but might require some legal "wangling". Anyone know a good property lawyer?

Thanks for any help,

bagg

 

[Aceyducey]

Bagg,

I'm not sure you've been getting good advice.

Your PPOR can't be an IP at the same time - and renting it back from your own trust is something the ATO frowns upon.

If you wish to sell your property to the trust stamp duty applies & an 'and/or nominee' discovered a year on doesn't help you to transfer the property anyway (you can't do this retroactively).

CGT only applies on the profit from a property and is normally reduced when selling your PPOR.

I would suggest you do some more research to understand the ins and outs of property investment & the legal framework around it.

You need to source a good accountant and find out more about what you are legally allowed & not allowed to do before you take any steps to move assets around.

Cheers,

Aceyducey

 

[Jackass]

In regards to the ATO, I believe the renting of your PPOR from a Unit Trust has been disallowed. However, it is still possible to do it with a discretionary trust.