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Ownership structures

Discussion in 'Legal Issues' started by 10in10years, 26th Jul, 2015.

  1. 10in10years

    10in10years Member

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    My wife works part time and earns 10% of my income.
    Obviously it would be beneficial if a negatively geared property was in my name & positively geared property in her name (to minimise tax).

    As I earn 90% of the income, I need to be on the loan. How do I structure the contract (ownership structure) to allow for a negatively geared property to turn positively geared & not pay the extra tax?

    I've heard of discretionary unit trusts? I think this gives me the ability to change the apportionment of ownership without transferring the title. Is this the best way to go for me?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    There is a lot more to consider than income tax. What are the consequences of transferring units? Stamp duty (maybe), CGT and new loans.

    Where is the property?
     
  3. 10in10years

    10in10years Member

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    Hi terry, the first property will be in qld
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Spousal transfer strategies don't work well there because stamp duty will be payable. If it was in VIC you could transfer between spouses without stamp duty.
     
  5. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Do you know what the rule is in WA Terry?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Thanks Terry. What about transferring units into a family trust, for eg?
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Transfer to the trustee of a discretionary trust would generally attract duty
     
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  9. bonanzawealth

    bonanzawealth Well-Known Member

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    how about Spousal transfer in NSW, will it attract stamp duty?
    Can Spousal transfer be done many times from A to B then B to A and so on? I guess not but no harm in asking, right?
     
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    It can be done without stamp duty going from one name to 2 in equal shares or Joint tenants. Only exempt if it is the main residence. Transfer can be at full consideration too.