Property Investors Trust - the facts

Hi Guys,

I am a bit late to this forum and excellent community,

I tried accessing the link and the link no longer works!!! Strange ....

Did anyone who has previously downloaded the reply by Chan Nylor be willing to email me a copy?? Or even just post on the forum what the gist of his reply was??? [Being only human ... very curious what he had to say, considering he did reply]

CHeers

JP
juen.phie [at] gmail.com

 

Hi! Did anyone ever reply to you on this?? Did you get to read that answer?
I am currently considering making a switch to Chan & Naylor and starting to use their PIT, but I am getting a lot of mixed info on them, so I'm not too sure what to do anymore.... Would love some insight!!

 

CHAN & NAYLOR "PROPERTY INVESTORS TRUST®" (PIT®) Achieves ATO Product Ruling PR2011/

CHAN & NAYLOR "PROPERTY INVESTORS TRUST®" (PIT®) Achieves ATO Product Ruling PR2011/15

Difference between Product Ruling and Private Ruling
The Australian Taxation Office has released Product Ruling PR2011/15 which applies to new Property Investor Trust® Deeds (PIT®) established and executed after 27th July 2011 purchased from Chan & Naylor.

This is the first Product Ruling on individual trusts issued by the ATO and it is also the first time the ATO has given a Product Ruling on a trust product that is not centrally controlled by the sponsor or product supplier thereby giving the taxpayer more control.

This Product Ruling only applies to the Property Investor Trust® organised through Chan & Naylor and operated in accordance with the conditions approved by the ATO within this Product Ruling. A Product Ruling is an ATO blanket approval that is available to all taxpayers operating within the Product Ruling framework unlike a Private Ruling that only applies to a specific taxpayer and cannot be relied on by other taxpayers.
Taxpayers can now have certainty in relation to interest deductibility when using a Chan and Naylor PIT® Trust.

The PIT® however provides a lot more than just a trust that allows full interest deductibility. PIT® benefits include:

1. There is no Vesting Date hence will not trigger capital gains tax and stamp duty because the trust does not cease and goes on forever. Most other Trust Deeds have a Vesting Date of 80 years which than triggers a capital gains tax and stamp duty for the beneficiaries and stops the property from being passed from generation to generation tax effectively.
2. Will allow interest to be claimed as a tax deduction in the taxpayers/unit holders hands thus negative gearing can be claimed against an individual's wages. Unlike many other Hybrid Trusts where the interest may not be tax deductible.
3. Provides asset protection as the property is held separate from the individual.
4. Provides a land tax threshold in most States of Australia except NSW so that one can minimize and even eliminate land tax in some States
5. Protects the property from the marriage breakdown of your children
6. Designed specifically for property and eliminates the E4 problems with other Trusts which trigger larger capital gains tax when the property is sold.
7. Allows control of the property to change hands such as the Trustee without triggering capital gains tax and stamp duty and enables the splitting of the assets of the Trust.
8. Allows the beneficial or unit holders to change hands with no stamp duty in some states.
9. If there is little or no gearing involved allows the flexibility to distribute the net rental to the lowest taxpayer.
10. There is an ATO approved Product Ruling PR2011/15 giving you certainty of your tax deductible interest unlike most if not all other Trust Deeds.

The Chan & Naylor Team
www.chan-naylor.com.au

Disclaimer: the above points are not an exhaustive explanation of the advantages of the “Property Investors Trust®” (PIT) ® and one should not rely on them without getting individual advice as the PIT may not be suitable to you in your circumstances.
Also the above points have not covered off on how the requirements of the ATO Product Ruling PR2011/15 apply to you.
Please note that the Product Ruling is only a ruling on the application of the law. It is in no way (either expressly or implied) a guarantee or endorsement of the commercial viability of the PIT®, of the soundness or otherwise of the PIT® as an investment or of the reasonableness or commerciality of any fees charged in connection with the PIT®.