Here we go, folks…. Property Tax PART 2 is finally here!!
So, let’s get down to the Ownership Structure, Trusts and SMSF insights you need!
Julia is the Founder of BAN TACS, a co-operative of Accountants, which has been helping thousands of Australian’s navigate the world of tax since 1992!! She has a Bachelor of Business and is a Chartered Accountant (CA), Certified Public Accountant (CPA) and a Registered Tax Agent…. which, if they don’t mean much to you, translates to this — “impressive” and “rare”!!
PLUS, because we knew she was coming, we threw it out there for our listener’s to ask us their most pressing Tax Q’s they have — and Julia’s going to answer the last of these today and dishing out her top tax tips on ownership and borrowing tax structures!
Get the answers to…
- What name should you buy in and the ideal ownership structure?
- Should you really buy in a trust?
- What about as a company?
- Are Self-Managed Super Funds (SMSFS) a good idea?
- What’s Labor proposing to do with trusts?
- What does “capitalising interest” mean?
- How can you control an equity using a line of credit?
- What do you need to keep in mind with SMSFs?
- How do you work out whose name to put it into?
- Should a property be in the high income earner’s name, or not?
- Will a trust let you negatively gear?
- What entity is easiest to borrow in?
- PLUS the exact questions below…!
Before we get to today’s questions, we want to let you know that we’ve compiled all of Julia’s Answers and Additional Resources into a PDF! If you’re interested, then just fill in the form below and we’ll send it to you right away. 🙂
Today’s Ownership Structure and Trust Related Questions:
Question from Ben:
When investing for the long term as a couple (with one partner’s income considerably higher than the other), what are your top tax tips to consider when determining ownership and borrowing structures.
Question from Locky:
What is the best tax structure for being able to keep borrowing (family trust or company)? Buy build and rent out for passive income? Thanks guys.
Question from C L Wong:
Should we open a company to manage the residential properties or a trust perhaps? If so, what are the tax benefits do we have? Thank you, Gents 🙂
Question from Alistair:
How to transfer property between entities (company to trust or company to personal name). Investigate how the family law act interprets this. Thanks.
Question from Damien:
Is there any point in getting a tax depreciation schedule anymore for existing fixtures (since recent changes)?
Question from Paul:
Is there any point getting a depreciation schedule done on a brand new build IP considering I can just give my accountant the exact costings of the build to depreciate?
Question from Pete:
I want to know: am I able to claim tax deductions if I rent out 1 or 2 bedrooms in my home? If I rent out 2 bedrooms in my 3 bedroom home, am I able to claim two thirds or my rates, Strata, etc?
Question from Matthew:
When renovating an investment property to what level must you renovate the IP so it can be classed as a “Substantial Renovation” to allow you to claim it as a depreciating asset?
Question from Andrew:
Would love to know if we have any further clarification on the possible negative gearing changes from Labor are we able to still offset our income with interest down to 0 but not claim it as a loss i.e. negative gearing or is there plans to take away claiming the interest charges at all so all income is classed as income.
Question from Nick:
How do I transition my investment property at retirement with minimal tax impact?
Question from Kosta:
Question from Sandy:
How do you choose/ find a quality property investment savvy tax accountant? Thank you for all your insights
Question from Sineth:
How to differentiate investment savvy/specialist tax agent and general Tax agent? What outcome Investment savvy tax accountant can bring in to table? Cheers
Question from Iain:
What sort of benefits could one expect from a property investment savvy/specialist tax agent over a generalist or do it yourself?
Thanks again for sending in your questions on Facebook folks! All of the answered questions will get a free book so make sure to reach out to us at [email protected]! 🙂