Turning PPOR into IP

[dionysus888]

Dale,

Congratulations on your neww PPOR. I note that you are going to turn your current PPOR into an IP and was wondering is there a best way to do this i.e. structure this or if you know that you will do this at some stage down the track, is there anything you would do in preparation e.g. ownership issues, asset protection and future distributions? Is there a preferred way taking into account CGT and stamp duty considerations and also deductable expenses and depreciation?
Always looking ahead at the big picture.

 

[DaleGG]

Hi

Yes, we have. The existing house was bought in our trust's name because we always knew that it would become an IP one day . . . that way, we started with a long term view in mind.

Otherwise, it can get messy with stamp duty and CGT issues.

Cheers

Dale

 

[dionysus888]

Thanks,

That was my thought but you never know what creative methods an Accountant might have when their own money/future is on the line.

Cheers,

 

[Jas]

I'm wondering about how a trust can own a PPOR...

When does the trust start gaining CGT for it? If the trust has owned it all along, isn't there an argument for it attracting CGT from the word go?

Jas