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  • Rosco
    replied
    Hi Bluecoat,

    Sorry I can't give specific advice as I don't know your circumstances. As per my last post "These are really things you should be going through with your accountant, as each situation can be different."

    Ross

    Leave a comment:


  • Bluecoat
    replied
    Originally posted by Rosco View Post
    Hi Bluecoat,

    These are really things you should be going through with your accountant, as each situation can be different.

    1) If you sell to your Trust, then the profit or loss from the LTC will flow to your Trust. This often works well, as from the Trust you can allocate to beneficiaries such as your children and gives you choices. Often the Trust would be your Family Trust. But you need to consider does this in anyway put your house at risk? (mainly watch for bank guarantees from shareholders)

    2) Why? If the profit from the LTC flows to the Trust anyway, why mess around with an extra transaction such as interest?
    But you might want to look at assigning your current to your Trust, and then gifting this.

    Ross
    Ross as below

    1.No mortgage on either so no gurantees.

    Sell to trust or sell shares?

    What if circumstances change and want to sell ?


    2.
    Buying more in the same LTC so any losses will be offset by profits. makes sense?

    Leave a comment:


  • Bluecoat
    replied
    Originally posted by Rosco View Post
    Hi Bluecoat,

    These are really things you should be going through with your accountant, as each situation can be different.

    1) If you sell to your Trust, then the profit or loss from the LTC will flow to your Trust. This often works well, as from the Trust you can allocate to beneficiaries such as your children and gives you choices. Often the Trust would be your Family Trust. But you need to consider does this in anyway put your house at risk? (mainly watch for bank guarantees from shareholders).

    No mortgage on either so no gurantees.

    Sell to trust or sell shares?

    What if circumstances change and want to sell ?


    2) Why? If the profit from the LTC flows to the Trust anyway, why mess around with an extra transaction such as interest?
    But you might want to look at assigning your current to your Trust, and then gifting this.

    Buying more in the same LTC so wont be profitable as much. Maybe 20Kpa


    Ross
    Thanks ........

    Leave a comment:


  • Rosco
    replied
    Hi Bluecoat,

    These are really things you should be going through with your accountant, as each situation can be different.

    1) If you sell to your Trust, then the profit or loss from the LTC will flow to your Trust. This often works well, as from the Trust you can allocate to beneficiaries such as your children and gives you choices. Often the Trust would be your Family Trust. But you need to consider does this in anyway put your house at risk? (mainly watch for bank guarantees from shareholders)

    2) Why? If the profit from the LTC flows to the Trust anyway, why mess around with an extra transaction such as interest?
    But you might want to look at assigning your current to your Trust, and then gifting this.

    Ross

    Leave a comment:


  • Bluecoat
    started a topic LTC and Trust

    LTC and Trust

    I am looking at ways to structure my affairs so that it is beneficial to my family of 4 . Wife and I are in 30 and 33% tax brackets with a UNI/high school attending children

    I have approached my CA who suggested I sell my shares to a Trust but unsure which entity should I use if I purchase more properties, possibly a development or a reno for buy and hold , potentially slightly negative.


    Current have a couple of properties in LTC with no mortgage as we advanced money to pay debt off. We are looking to grow our portfolio when an opportunity arises.

    1. If I sell my LTC shares to a Trust, does this Trust has to be different to a Family Trust if we use the equity from our home?

    2. Can The new trust charge interest to funds that has been advanced to the LTC to pay off debt? I have a large shareholders fund in the LTC, (loans paid off) if this money is owned to a trust , trust then charges interest to the LTC, is the interest deductible?
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