Would it make sense to move a property into a trust if land tax savings > stamp?

Discussion in 'Legal Issues' started by jaybean, 4th Feb, 2016.

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  1. jaybean

    jaybean Well-Known Member

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    If the last house tipped you over, it seems to me that stamp of 15k would be paid off in just 4 years (4k land tax yearly).

    But land tax is tax deductible. So maybe the pay off period is much longer. And you'd also want to move the most expensive property out because the LV will keep increasing and you don't want to negate any benefits too quickly.

    What do you think? Or am I missing something here?
     
  2. Propertunity

    Propertunity Well-Known Member

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    Have you considered any CGT event implications on the "sale" to your Trust? Also consider any neg. gearing losses might be trapped in the Trust.
     
  3. Terry_w

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

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    It depends...

    on
    State of the land
    Stamp duty
    CGT
    How much equity
    Ability to get finance
     
  4. jaybean

    jaybean Well-Known Member

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    I only just bought it so no CGT. I screwed up putting it into my name.
     
  5. Terry_w

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

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    And no equity to extract!
     

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