Property in Trust and PPR

Hi all,
We have a NSW property held in an investor trust.
Our question is, can we move back into the property and have it recognised as our PPR and further would we be entitled to a land tax threshold.
Cheers

 

Yes, and no.

 

I was lead to believe that a ppor held in a trust would not be CGT exempt?

 

Section 118 of ITAA 1997 requires that an "individual" hold the property for the CGT exemptions to apply. It doesn't apply to companies or trusts (discretionary, unit or hybrids)

Even if the trustees of the trust are the same individuals who live in the property the exemption is not available. Refer ATO ID 2003/467 ATO ID 2003/467 - Capital gains tax: main residence exemption - residence owned by family trust

 

Thats correct.

 

In NSW the following generally applies to a property owned by a trust:

1. Fixed Unit Trust
CGT exempt = No.
Main residence = No.
Land Tax. Threshold = Yes. But no LT exemption as a residence. Secondary LT may apply if unitholder/s own property also.

2. Any other type of Trust
CGT exempt = No.
Main residence = No.
Land Tax. Threshold = No.

Note also that third element costs may not apply where they are paid by the unitholder v's the trustee. If the unitholder pays $ to the trustee to bypass this concern it may be considered assessable rent.