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refinancing wuth trusts

Discussion in 'Real Estate' started by madmark, 24th Jan, 2007.

  1. madmark

    madmark New Member

    Joined:
    23rd Jan, 2007
    Posts:
    1
    Location:
    goldcoast qld
    hi
    we currently have our PPOR valued at $480000 and 1 IP($220000) total
    combined value $700,000 of which we owe 120,000 on PPOR and 125000 on IP
    we would like to sell both properties to a unit trust and use the money received to purchase a new PPOR for approx $450000. Any ideas on how this can be done and be able to have tax deductions against the whole $700000
    any help would be great thanks:)
     
    Last edited by a moderator: 24th Jan, 2007
  2. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    Location:
    Sydney
    Hi Mad Mark
    you can sell to a HDT and then issue units to the unit holders for $700K. This will make it tax deductible.
    Points to consider
    1. Stamp duty on transfer
    2. CGT on IP
    3. part IVA - anti avoidance provisions of the inc Tax asst act

    3. - why are you doing it ? will anything change? eg beneficial ownership

    A good mortgage broker can assist.
    NickM