Ownership structure for family home

Discussion in 'Legal Issues' started by scientist, 27th Jun, 2021.

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  1. scientist

    scientist Well-Known Member

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    What are some interesting considerations about ownership structure of the PPOR?

    Some odd structures I've seen:

    I've seen some held under a Pty Ltd - why would they do that? There are huge disadvantages... and what's not apparent is whether the Pty Ltd is a trustee or holding in its own right

    I've seen some held in joint names under 1 person and a Pty Ltd - what's going on there?

    Then the common ones being 1 name, or 2 names
     
  2. Terry_w

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

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    Company could be acting as bare trustee. Hides ownership yet maintains main residence exemption.
     
  3. Trainee

    Trainee Well-Known Member

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    Wouldnt you also need nominee shareholders and directors to disguise ownership?
     
  4. Terry_w

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

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    Depends how far u want to go. One of my clients had a friend as director and as trustee for him to hold the shared
     
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  5. scientist

    scientist Well-Known Member

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    Do trusts get the CGT PPOR exemption as well as land tax exemption, or just the former?

    And what about cases where there's 1 name and 1 company in joint names or tenancy in common? what are they trying to achieve there?
     
  6. Terry_w

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

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    A trust can't open property. Someone else as trustee can get it potentially.

    No idea on the joint ownership. Heard of accountants mistakenly thinking this saves land tax if rented out
     
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  7. scientist

    scientist Well-Known Member

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    Is 'open' a typo? Not sure what you mean.
     
  8. Terry_w

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

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    sorry, 'own'. A trust can't own property.
     
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