Got myself into a mess - have spent almost a year getting 'advice' with no luck - help!

What's the difference between avoidance and evasion? I'm not being a smart-alec, I just don't think that the ATO distinguishes against either.

I thought that as far as the ATO cares (under general anti-avoidance provision of the tax act) if they perceive that the primary purpose of a strategy or structure is to pay less tax, then it's illegal.

So legally, the best (and possibly the only legal?) reason for utilising a discretionary trust is 'asset protection'.

 

I think the correct term is minimisation (legal), rather than avoidance or evasion.

The use of the trusts here were not to reduce tax. In fact, with over $100k of running losses already trapped in this DT thanks to these two properties (and the $420k+ of capital losses to add to this if I sell), I'm actually paying much more tax.

 

There's light on the horizon in Gladstone. You just need to be there at night to see the whole sky along the coast glows orange

Even if Adani gets up, I can only see Mackay getting a 'bump'. Lots of new infrastructure in the area already, so it's only the mine and rail at Alpha and the port at Bowen.

 

Ouch. Sorry that's stung you so badly. It sounds to me like you need restructuring and taxation advice and someone who can think outside of a spreadsheet.

 

David
did you sell any of the other properties you mentioned above to help with the shortfall?
If you have some great gains and you can reduce your overall debt this may help you move forward. I am hoping Syd or Melb and unencumbered?

MTR

 

im of the same view,
If these people were so good with finances would nt they be doing their advice and making a living off that instead!!!!

 

I'm guessing they say they do it, not for the money, but because they get a buzz out of helping clients achieve their goals

 

^^^^^^ This

re your position.

Others are having trouble too with Gladstone, but when I look around, it is not a small place, if I was in that position I would probably move there if I had too, I cannot see how it could stay depressed forever. I dare say some may be thinking of buy in all the gloom.

I think getting good advice is hard, so I think your right, you will have to nut out what you think is best or find someone else. Maybe someone who posts here.

would your other IP's not balance things out so your almost neutral ? once you sort the trust issues out ?

 

Hi guys. A quick update, the two Gladstone properties will cost me around $36k a year to hold. It's painful, but the only option for the next 12 months.

I predict (and hope) in this time it will find a floor. Rental stock is slowly but surely being soaked up, down from 1,067 to 1,013 in the last 3 weeks.

 

Dear David,
one positive thing that I can see is that you are young enough to live through all this!
Keep your chin up!
I hope this helps

 

Sorry to hear about your predicament, its a tough one. My 2 cents: Would you invest in Gladstone today if you were not in the mess you are in? If not, then you should cut your losses, sell the duds and focus your remaining resources on property that is going to get you back to where you need to be. Rule number 1 in gambling is never chase your losses and mining towns my friend- are nothing but a gamble. Offload and move on

 

Thanks Indifference, I think this is the approach. Would like to hold, but (now a few years shy of 40) my plan was to but a nice(ish) PPOR and start a family about now. I thought I'd be well set for this, but the universe had other plans.

 

That's pretty poor from the advisor firm. Are you able to model the scenarios yourself to determine the preferred outcome?

 

Shack up and have some kids asap. Despite how things look now, you've done really well and will still have some investments and a lot of wisdom when you've sorted it out. 40's is a good time to work and invest.

 

Yes, that's what I've decided to do.

 

Then losing $36k a year will be the least of your money woes

 

Who's names are the properties in?
I have not read all the pages but home many other properties are there besides the 2 Gladatone dogs?
How much equity is in them?

Have you considered bankruptcy..
Seriously, $420k in losses, plus costing you $36k to hold each year.
Have you weighed up the opportunity cost of going bankrupt vs holding for time, preying for growth, etc..

 

David
Any updates on this. Sell down?