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From: Jan M


If you are renting a house from a trust of which you are a director, can you rent it to yourself as a fully furnished property and claim depreciation on (your own) furniture?
Thanks
 
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Reply: 1.1
From: Jan M


Can the house be sold to the trust furnished? Can you then still claim depreciation or should the furniture be purchased after the trust owns the house.
Thankyou
 
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Reply: 1.1.1
From: Dale Gatherum-Goss


Hi Jan

Either is fine. However, if you sell the house unfurnished then there cannot be stamp duty on the furniture portion as well.

Have fun

Dale
 
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Reply: 1.1.1.1
From: Andrew D


Dale,
If I own my own house can I sell it to the trust/ company which I own and then lease/rent the property off the company ?
I realise that would incur a lot of costs (stamps, etc.) but just a semantic question.

Enjoy
AD

Stumbling blocks are just stepping stones to the successful.
 
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Reply: 1.1.1.1.1
From: Dale Gatherum-Goss


Hi AD

Yes, you can and the new entity can borrow money to do so but, you will incur stamp duty costs and legal fees etc.

I do see it from time to time, but, most people find the legal costs just too much to go down that road.

Have fun

Dale
 
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Reply: 1.1.1.1.1.1
From: Martin .


To continue the semantic question - relating to selling currently owned to trust, who sets the valuation for the proposed sale?

(Neither party would mind the trade coming in at a princely $1 I'm sure!)

ML.
 
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Reply: 1.1.1.1.1.1.1
From: Andrew D


I have a funny feeling that the ATO would see this as not fair market value. Somehow I think this would be their yardstick. Then again I am no accountant I just use a great one...

Enjoy
AD

Stumbling blocks are just stepping stones to the successful.
 
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Reply: 1.1.1.1.1.1.2
From: Dale Gatherum-Goss


Hiya

Funny enough, you set the value and that is all that matters. The tax office only takes into consideration the market value regardless of the price . . .

Dale
 
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Reply: 1.1.1.1.1.1.2.1
From: Andrew D


So what you are saying Dale is that such a transaction is possible ($1) ?
What would the ATO do in this case ?

Enjoy
AD

Stumbling blocks are just stepping stones to the successful.
 
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