One IP one trust

Discussion in 'Legal Issues' started by wayne, 30th Sep, 2016.

Join Australia's most dynamic and respected property investment community
Tags:
  1. wayne

    wayne Well-Known Member

    Joined:
    4th Jun, 2016
    Posts:
    73
    Location:
    ACT
    Looking at buying further NSW IP's and are looking at an appropriate vehicle to minimise land tax. If we structured individual LTUT trusts to hold one property only - this will provide a land tax threshold per trust. correct
     
    wayne, 30th Sep, 2016
    #1
  2. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    8,415
    Location:
    Gold Coast
    I don't know about NSW but, in QLD, if you have properties in multiple trusts with the same trustee, the OSR 'amalgates' the trusts/properties for Land Tax purposes and you only get one threshold.

    Simple solution: have trusts with different trustees.

    Something to be aware of/look into.
     
    kierank, 30th Sep, 2016
    #2
  3. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    42,005
    Location:
    Australia wide
    No it won't.

    Unit holders as assessed as if they are the owners of the land.
     
    Terry_w, 30th Sep, 2016
    #3
  4. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    42,005
    Location:
    Australia wide
    Not necessarily. Just have different beneficiaries. (not that you would want to structure with a trustee being trustee of more than one trust).
     
    Terry_w, 30th Sep, 2016
    #4
    kierank likes this.
  5. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    8,415
    Location:
    Gold Coast
    Yeah, we had a same list of beneficiaries.
     
    kierank, 30th Sep, 2016
    #5
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,555
    Location:
    Sydney
    A company owner is the alternative. However if its neg geared or held for capital growth there will be issues
     
    Paul@PAS, 30th Sep, 2016
    #6
    Terry_w likes this.