Accountant for Forming a Company or trust to buy a Property

I am not going to live in it for the first 5 years for sure
I will just stay for a few months just to satisfy the PPOR requirements to save Capital gains tax down the line

So for 5 years I am renting it out
Under these circumstances what is the best option?

Cheers

 

If you're looking for a tax deduction I'm happy to offer a consulting service to you. Shoot me $10k and I will put the invoice together. Happy to invoice quarterly (or better...monthly) going foward and you can be sure to get your tax bill way way down!



Blacky

 

I wish I could!!!!!

Cheers

 

Gist of what I gathered till now

Buy the property only in my name
Take an unsecured loan of 100k which the wife has saved and pay her an interest of 12% PA on it
As she is in the minimum tax bracket, substantial savings in overall tax.
Use the losses in the IP to offset taxes on my income

Continue with this arrangement as long as the house is rented

The moment I start living in the house, repay Wife’s loan and also gift her half the house free so no stamp duty payable .

Is there anything I have missed in this arrangement, or is not legally allowed ?

Cheers

 

if its really your dream home, live in it. you want a better tax outcomr now, rent and buy ips.

 

It will be my dream property only after the suburb has matured.
I am not renting it out solely for tax saving purposes but out of compulsion
The tax benefit is an added bonus

It still has rough edges and I am hoping in 5 years it will be a much better place for me to live in
So I am killing 2 birds with 1 stone

Enjoy the negative gearing for 5 years and move in when the time is right

Cheers

 

and if you have more money to buy a nicer place in a few years? you make 180+. you can save. not very hard for you to afford some ips.

mixing ips and your own home is an emotional mistake.

you have more than one stone. look for your dream home, and investments separately. trying to kill two birds with one stone risks both flying away because you miss.

 

I am already spreading myself thin

I am buying this property and along with it I am also buying another property of 600k an an IP to take the full advantage of the stamp duty rebate and 10K FHOG as a first time property buyer

So after paying emi for 2 properties, I will not have much savings

Cheers

 

Bloody oath!

 

Yes
Part IVA
Is it her money?
Mere Staying in property won't qualify for mre

 

The 100k is wifes money which she has saved over the years
I have saved 200k over the years
But we always had a joint account, so the 300k are lying together
I hope that does not pose a problem

What is “mre”

Cheers

 

Joint accounts - how can you borrow your own money = problem

main residence exemption.

 

I will close the joint account and open individual savings accounts for both of us
I will take my 200kand she takes her 100k

Later on when I need the money she will transfer the 100k to me by cheque as loan

There is a paper trail of her salary income and gift from her parents over the years in case it is asked where she got the money from

Can this work ?

Cheers

 

This is the sort of thing you need legal advice on.

 

Agree. So many get it wrong and so often their insurance won't cover it. It is legal advice. If an accountant wants to provide structuring advice then they should become a lawyer.

 

Hi there

I am thinking of buying a property in the auction this weekend.

I was wondering if I should get tax advise in terms of what I need to be entering in the contract before this weekend or can I get advise after the weekend as well and make modifications to the contract I sign immediately after buying the property

Still confused on buying in 1 name or joint or form a company

Is the name I give when signing the auction sheet, cast in stone, or it can be modified before the final sale papers are drawn up

How does it work ?

Cheers

 

That is legal advice - there are various consequences to entering a contract and then deciding you want a different entity to settle. See a lawyer before the auction.

 

Hi Terry

I did get some advice previously and was asked to write in
"Name of person 1 and/or Nominee"

Is that good enough to be changed to any structure later on ?

Cheers

 

Possibly not if the nominated purchasing entity did not exist at time of forming the contract. A double stamp duty event may occur.

 

no