STOP! If you are a Property Investor!

Does any of the following apply to you:

• You own your house in your own name (or your partner's name)
  
• You own your house in a family trust with no loan agreement
  
• You own your house in a hybrid trust simply because your accountant or lawyer said that you had to to get your negative gearing deductions

If you are in ANY of these situations, then not only are you at SERIOUS risk of losing your property in a lawsuit (ESPECIALLY if you are in business), but you may get into trouble if the Tax Office audits you down the track.

The fact is, lawsuits are more and more common.

Click Here for more on asset protection and the risks of lawsuits

If you don't own your property in a trust, you have minimal or no asset protection.

But I am not in Business at the Moment!

That may be so. But things change. And if you go into business and then decide to move your property into trusts to protect them, at worst, you will have massive stamp duty and capital gains tax costs to deal with, as well as a 5 year wait before your asset protection plan works (this is under special laws passed by the government recently) and at best, you will have large legal and accounting fees to do the restructure, administrative inconvenience in your business, and a 5 year wait before your asset protection plan works.

So get your asset protection reviewed today!

Click Here for more on asset protection

I Have Heard That You Lose Your Negative Gearing Tax Benefits In A Property Trust. Is
That True?

Yes that is true (subject to two exceptions).

In a family discretionary trust, you will lose your negative gearing benefits because
you have to claim them in the trust, not in your own name. This is a problem if you
are a high income earner.

There are, however, three ways to avoid this:

• Multiple Trusts. If you earn income from share trading or internet marketing
  or any business income through the same trust as your negatively geared
  property, or through other trusts, you can shift some or all of that income
  into your property trust to offset against the negatively geared property loss.
  So for example, if you have a $15,000 negative gearing loss, and you make a
  profit of $20,000 from share trading in another trust, just shift $15,000
  of that income into the property trust, and you will only pay tax on $5,000.
  
• Hybrid Trust. This is discussed below.
  
• Family Discretionary Trust with Loan Agreement. You borrow the money
  in the name of the high income earner and lend it into the trust at a
  commercial interest rate.

Speak to one of our specialists further about these options.

What about Hybrid Trusts? I have heard they are great .

Hybrid trusts are the "in thing" at the moment.

The idea is this. One problem with buying a property in a family trust is that you usually can't claim your negative gearing deductions (I say usually because there is a unique Tax Intelligence™ trick that we use, that is perfectly legal, that may be able to get you your negative gearing deductions, depending on your situation.)

Many accountants say to solve this problem, you just buy your property in a hybrid trust. In a hybrid trust, you do not own the property, you only control it (giving you asset protection), and you are entitled to get all the income from the property.

In effect, what happens is you end up claiming your negative gearing deductions.

We can tell you for a fact that if most hybrid trusts were audited by the Tax Office, they wouldn't have a hope in hell of standing up. They would be struck out as a tax avoidance scheme. (Not ALL hybrid trusts would have this problem, but many of them would ..)

You could be the next tale of woe in the Financial Review .

If you have a hybrid trust, come and see us, and we will tell you if you have a problem.

Can you help me do my tax return and ensure I claim the most tax back that I am allowed to so by law?

Yes we certainly can.

Our Accounting Package gives you a list of ALL the deductions that you may be able to claim against your tax. Have a look at this list and see if there are any expenses that you are missing out on. After all you don't want the taxman to get any more than he is entitled to do you?

We have a free property investors report about to be released shortly (see below).

Click Here to download our Accounting Package

As A Tax Intelligence™ Client, What do I get for My Money?

For any Tax Intelligence™ client, who sets up structures for property investing, we include the following at no extra cost:

1. Our Unique Property Investors Report

We are working on creating a special report for property investors.

For clients of Tax Intelligence™ , if you buy a property trust from us, you will receive this special report ABSOLUTELY FREE .

2. Our Tax Intelligence™ Email Update Service

You get the FREE subscription to the Tax Intelligence™ Email Update service. This is a brief update that we send weekly (on average) with recent developments in tax, superannuation, asset protection, financial planning and other related topics. It also keeps you informed on new products and special offers. You stay in the loop on what is going on in the world.