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Property in Trust and PPR

Discussion in 'Accounting & Tax' started by wayne, 26th Jun, 2016.

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  1. wayne

    wayne Active Member

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    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
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes, and no.
     
  3. Username86

    Username86 Well-Known Member

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

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent

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  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Thats correct.
     
  6. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    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.