title under wifes name, joint bank application

hi all.
1)i was wondering if i bought a property under my wife's name(land tax reasons), had a joint bank application, or individual application by her, and rent was paid into my acct and i paid the difference for the loan from my acct. would the ato allow this
2)for any properties under me or my wife"s name, if one of us pass away would the ownership automatically transfer to the other
3)a: if a unit trust was set up with my company as trustee and my wife as sole unit holder, can i add my children to it later on, so they can take over the properties incurring no capital gains tax
b: could i claim the negative gearing benefits under this structure still


thanks in advance
 
1. Yes. But only she could claim any costs such as interest

2. no

3. a. no
b. not if your wife was unit holder.
 
thanks terry

1.So what happens if i have a ppor property under my name and an IP under my name, and i pass away
does she have to pay capitals gains on both straightly or when sold
with the ppor, i thought the spouse were exempt but the children weren't after a certain period of time? sorry, not sure??

2. for a unit trust, can i add my children in as unit holders later and if so, do i pay capital gains tax or some duty?

thanks
 
thanks terry

1.So what happens if i have a ppor property under my name and an IP under my name, and i pass away
does she have to pay capitals gains on both straightly or when sold
with the ppor, i thought the spouse were exempt but the children weren't after a certain period of time? sorry, not sure??

2. for a unit trust, can i add my children in as unit holders later and if so, do i pay capital gains tax or some duty?

thanks

1. Depends if you have a will or not. If no will it will depend how many spouses you have, children from other relationships etc.

No CGT on passing to the executor or to a beneficiary.

2. Yes and yes..
 
thanks terry. i better contact u when i setup another trust, and if it is possible to fixup my unit trust before my next property purchase.
i setup a trust thru cleardocs years ago,on the recommendation of my broker, which i now know was the wrong thing to do based on my previous mortgage brokers advice. i setup a unit trust.
it is me as the sole unit holder and my company as trustee
i did it at the time because he said i could get more loans like this. this was the main reason i.e. hiding guarantors in further loan apps
reading thru these forums, i see that is not the case
i would have preferred to include my children and my wife but, in order to qualify for land tax exemption, neg gearing etc etc, i setup a unit trust, instead not discretionary trust

later when i put my wife and kids is it a stamp duty or is it a capital gains tax on the property holdings, i need to pay to include them as unit holders

thanks
 
youmight have grounds to sue your mortgage broker.

If the trust is just a unit trust then it may not qualify for a land tax threshold in NSW. It must be a fixed trust with the beneficiary absolute entitled to both income and capital. There would also be stamp duty and CGT on the transfer of units.

You should also make sure your will covers the transfer of units on your death and the control of the trustee company.
 
Thanks terry but i blame myself
The main selling point for me was hiding the guarantor part for future
loans
He did ask me to ask my accountant about it
1.It seems i am no better or worse off having set up unit trust vs if i bought in my name. Is that the cace ( not including setup and accounting costs)

2. I have capital losses from shares which i know i can offset with properties under my own name
How about for the unit trust
As i am the sole unit holder can i offset capital gains with properties in this trust with previous share losses

3. If i set up a discretionary trust which has no threshold for land tax, and i include her as a beneficiary, does she still mailtaon her 432k thredhold for buying ip in her own name

4. If children r included in the discretionary trust any impact on their first home buyers grant later or their indivudual land tax threshold?

Thanks
 
Renminbi

1. You should be no better or worse off in the immediate future but would better off in the long run as you could employ some strategies you otherwise couldn't.

2. If you own units in a unit trust you would get income from the trust and other income losses could offset this trust income. If they are capital lossess on the shares then these can only be offset with capital gains - which you would get if the trust sells the property.

3. yes

4. It shouldn't as the children would just be potential beneficiaries of the trust.
 
thanks terry

so that means shares that i purchased 7 yrs ago and sold as a capital loss UNDER MY PERSONAL NAME, could be used to offset a future sale of a property with capital gains held in the name of of a trust, corporate trustee, and as me as sole unit holder?
 
thanks terry

so that means shares that i purchased 7 yrs ago and sold as a capital loss UNDER MY PERSONAL NAME, could be used to offset a future sale of a property with capital gains held in the name of of a trust, corporate trustee, and as me as sole unit holder?

Yes that could be possible because the trust passes income through to the beneficiaries and the income retains its character.
 
also terry do u do conveyancing for other states as well as sydney
for eg a property purchase in brisbane

No I only do NSW and I try not to do much of that as it is not an area that I wish to focus on. Now I am concentrating on structures, asset protection and estate planning from a legal and financial planning point of view.
 
thats a pity
thanks for all ur advice
will b in touch, once i max out my land tax thresholds and set up a DT with u
thanks again
 
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