Land tax at 43% of Gross Rent

Discussion in 'Accounting & Tax' started by Terry_w, 28th Jan, 2017.

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  1. Lacrim

    Lacrim Well-Known Member

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    How so TerryW?
     
    Lacrim, 29th Jan, 2017
    #41
  2. Terry_w

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

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    Spouse A controlling one
    Spouse B controlling the other

    I have looked at the legislation and it is unclear whether a related trust owning the shares in the 3rd one will work. It is at the commissioners discretion. Private ruling would be wise.
     
    Terry_w, 29th Jan, 2017
    #42
  3. Lacrim

    Lacrim Well-Known Member

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    Yeah ok. Too bad we're already both shareholders of company 1 :(
     
    Lacrim, 29th Jan, 2017
    #43
  4. Terry_w

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

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    you could transfer shares - but many issues to consider
     
    Terry_w, 29th Jan, 2017
    #44
  5. devank

    devank Well-Known Member

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    How do I get two spouses in Australia? ;)
     
    devank, 29th Jan, 2017
    #45
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    The Is Llama Council could help you out here - marry one, defacto the others [​IMG]
     
    Scott No Mates, 29th Jan, 2017
    #46
  7. Terry_w

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

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    Under the succession act you can have more than 2!
     
    Terry_w, 29th Jan, 2017
    #47
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Success!!
     
    Scott No Mates, 29th Jan, 2017
    #48
    Terry_w likes this.
  9. Omnidragon

    Omnidragon Well-Known Member

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    As a structuring expert, do you think he's mucked the structure up? Should put it in a trust if he's already on the highest tax bracket.
     
    Omnidragon, 29th Jan, 2017
    #49
  10. Terry_w

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

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    Who my friend?

    Mucked it up for sure!
     
    Terry_w, 29th Jan, 2017
    #50
  11. sash

    sash Well-Known Member

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    Know a few people who put real estate into trusts in NSW? :D ...dumb ...dumb.......
     
    sash, 29th Jan, 2017
    #51
  12. Terry_w

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

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    It depends on their situations - not necessarily dumb.
     
    Terry_w, 29th Jan, 2017
    #52
  13. dabbler

    dabbler Well-Known Member

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    Go to Bankstown LGA, have as many as you like.
     
    dabbler, 29th Jan, 2017
    #53
  14. Omnidragon

    Omnidragon Well-Known Member

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    Oh. Is that right? Not sure what land tax rules are there
     
    Omnidragon, 29th Jan, 2017
    #54
  15. Omnidragon

    Omnidragon Well-Known Member

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    Yea your friend
     
    Omnidragon, 29th Jan, 2017
    #55
  16. sash

    sash Well-Known Member

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    yep 0 threshold on trusts but in a vompany ok. different to qld and vic
     
    sash, 29th Jan, 2017
    #56
  17. Terry_w

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

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    No its not right.

    Discretonary trusts have zero threshold, but that doesn't mean owning via trust in NSW is 'dumb'. There are many reasons why this may suit.
     
    Terry_w, 29th Jan, 2017
    #57
  18. devank

    devank Well-Known Member

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    Here are the land tax 2015 rules By State By Entity all in one post
    Land Tax 2015 - State By Entity
     
    devank, 29th Jan, 2017
    #58
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  19. AdemD

    AdemD Member

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    For those wanting to build a property portfolio (residential), would it be advisable to diversify across various states due to land tax concerns? I had this conversation recently with an experienced investor and he suggested that the 'disadvantages' of investing interstate outweigh any gains from land tax relief. Yes, he was a bit vague. TerryW, what's your oppinion on this one?
     
    AdemD, 31st Jan, 2017
    #59
  20. dabbler

    dabbler Well-Known Member

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    Is that what all those Borat avatars are alluding too ?
     
    dabbler, 31st Jan, 2017
    #60
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