Rent of PIT
- Thread starter Cramer
- Start date
Cramer
I have 2 properties owned by a HDT I was looking into this scenario ( just for a short term period of 6 months due to circumstances at the time ) and was advised against it by my accountant. I can't recall the reasons apart from it not being / appearing to be an arms length transaction.
I'm sure some of the tax experts on the forum will clarifywhy you should not go down this path
Ross
I have 2 properties owned by a HDT I was looking into this scenario ( just for a short term period of 6 months due to circumstances at the time ) and was advised against it by my accountant. I can't recall the reasons apart from it not being / appearing to be an arms length transaction.
I'm sure some of the tax experts on the forum will clarifywhy you should not go down this path
Ross
Check out TR 2002/18
http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR200218/NAT/ATO'&PiT=20060111000001
...its a no go.
http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR200218/NAT/ATO'&PiT=20060111000001
...its a no go.
Answer from Ed Chan & Tony Melvin in link below:
http://www.knowledgecentre.com.au/g...-on-your-own-home-by-tony-melvin-ed-chan.html
In short, the answer is NO.
http://www.knowledgecentre.com.au/g...-on-your-own-home-by-tony-melvin-ed-chan.html
In short, the answer is NO.
Chan & Naylor PIT
Hi
In short (without knowing your individual circumstances) the answer is NO, however if you have acquired a Property Investors Trust deed tm ..and you have a specific question in relation to your individual circumstances you may want to contact our Perth Office.
Level 1 251 Hay Street
East Perth WA 6004
Ph: 08 9467 7509
One of the Senior Consultants will be able to clarify this situation for you.
Regards
Bianca on behalf of Chan & Naylor Accountants
www.chan-naylor.com.au
Hi
In short (without knowing your individual circumstances) the answer is NO, however if you have acquired a Property Investors Trust deed tm ..and you have a specific question in relation to your individual circumstances you may want to contact our Perth Office.
Level 1 251 Hay Street
East Perth WA 6004
Ph: 08 9467 7509
One of the Senior Consultants will be able to clarify this situation for you.
Regards
Bianca on behalf of Chan & Naylor Accountants
www.chan-naylor.com.au
I've also wondered about this - if you find an answer or more info pls post or PM.
interesting subject as always
I recently read an article from a Sydney Legal/Accounting/Financial Planning Group (5 offices) wherein they advocated the use of a Discretionary family trust with a pty ltd trustee to purchase an IP, your family then rents that IP at a proper market rental on a long term lease
Capital Gains expemptions are lost and you may be liable for land tax, but your lease on the house will valued for Capital Gains tax and you can claim interest payments/insurance/repairs/depreciation
that seems contrary to many discussions here and what I'd always believed
I recently read an article from a Sydney Legal/Accounting/Financial Planning Group (5 offices) wherein they advocated the use of a Discretionary family trust with a pty ltd trustee to purchase an IP, your family then rents that IP at a proper market rental on a long term lease
Capital Gains expemptions are lost and you may be liable for land tax, but your lease on the house will valued for Capital Gains tax and you can claim interest payments/insurance/repairs/depreciation
that seems contrary to many discussions here and what I'd always believed
