Benefit of buying a property within a trust?

Discussion in 'Business Accounting, Tax & Legal' started by Lloyd, 21st Nov, 2021.

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  1. Lloyd

    Lloyd Member

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    Hi there,

    I have 2 investment properties in the Northern Beaches, NSW - both held in my name.

    Eventually I hope to buy another as an investment, is there any benefit buying this property under a trust as opposed to my name?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It depends on a lot of things but there could be. This is something you should seek specific legal advice on.
     
  3. geoffw

    geoffw Moderator Staff Member

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    Two potential issues come to mind. There are probably many more.

    1. Whether you are married or not
    2. Where you are going buy. There are possibly land tax issues, especially if buying in the same state.

    As Terry says, seek advice.
     
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  4. See Change

    See Change Well-Known Member

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    While you need to seek advice , I like to understand as much as possible before hand , so it helps me evaluate and query that advise .
    I’ve been in a few situations where I’ve realised the “ advisor “ knew less than me .

    Can enable you to minimise ( or maximise ….) land tax . This varies from state to state .

    also can be tax advantages of being able to divert income and capital gains to someone in a lower tax bracket .

    I know it was a big thing on the forum when we were first buying property . It’s worked for us in terms of Minimising land tax and CGT , but I’m aware of current members who weren’t aware of all the land tax implications and ended up transferring properties out of Trusts and paying stamp duty to do that .

    labor haven’t ruled out changes to taxation on DT’s in the coming election and considering they’ve ruled out changes in many other areas , if they want to raise tax revenue , it’s hard defend changes there , as your average tax payer doesn’t use them .

    Who knows ? maybe something like the trust pays a minimum tax of company rate on any distribution ….

    In terms of structure , we don’t hold everything in one form of structure , simply because the government can change the rules .

    so we have some in my name , some in wife’s name , some in DT’s and some in super .

    cliff
     
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