Valuations vs trusts vs DA's pending ....?

Discussion in 'Accounting & Tax' started by Keentolearn77, 17th Sep, 2017.

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  1. Keentolearn77

    Keentolearn77 Well-Known Member

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    hi

    If one was looking to submit an application for a planning permit.
    Get a valuation done on the property as it stands presently
    Decided to move the property from personal name into a trust before submitting application or receiving a planning permit (DA)
    I assume this is all straight forward and ok, 'the smart thing to do'
    OR
    Will the tax man want to Grab more cgt & stamp $$$ and try and take a greater amount basing the valuation prior to 'sale' / 'changing entities' should be reflective of a potential value should the property be capable of or later receiving a planning permit....??
     
    Keentolearn77, 17th Sep, 2017
    #1
  2. Paul@PAS

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

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    Its a sale at market value and yes stamp duty and CGT are triggered.

    You really should get advice before deciding. The advice should consider when and how the property value is determined but the savings may be minimal.
     
    Paul@PAS, 18th Sep, 2017
    #2
  3. Terry_w

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

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    On what basis you you make this assumption?
     
    Terry_w, 18th Sep, 2017
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  4. Keentolearn77

    Keentolearn77 Well-Known Member

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    I guess thats why I'm putting it out there....
    Better asset protection...?
    Reducing taxation lawfully...
    I'm not breaking any laws....?
     
    Keentolearn77, 19th Sep, 2017
    #4
  5. Terry_w

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

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    Simply transferring a property to a trust doesn't give you asset protection. It will depend on how the transfer is done and hoe the trust is set up.
     
    Terry_w, 19th Sep, 2017
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  6. Paul@PAS

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

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    hoes and bros - A family trust ?
     
    Paul@PAS, 19th Sep, 2017
    #6
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