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Can we claim a Primary Residence Exemption for a property owned by a Trust?

The main residence exemption under the CGT rules cannot generally apply to properties owned by a trust. The main residence exemption can generally only apply when the dwelling is owned by an individual – refer to section 118-110 ITAA 1997. There are some very limited exceptions to this including:

  • Where the property is held by a special disability trust.
  •  Where the property was owned by an individual just before they died and is now held in a deceased estate or testamentary trust, there are some special rules which can potentially enable the main residence exemption to apply; or
  • Where the occupier of the property is absolutely entitled to the property as against the trustee.

What is the typical turnaround period for completing an annual tax return with Investax, and what stages are involved in the process?

At Investax, we prioritize delivering high-quality service to our clients, and our annual tax return process reflects this commitment. We do not offer on-the-spot tax returns, eliminating the need for in-person meetings. Instead, you can initiate the process by simply forwarding us your relevant information. Our standard turnaround period year-round is typically 4-6 weeks. This timeframe encompasses several crucial quality assurance steps as we meticulously attend to each client’s tax return. These steps involve collecting data, confirming details with our accounting team, reviewing previous files (for new clients), processing data by senior accountants, communication with clients to resolve queries or missing information, thorough review by a Client Manager, sending a draft tax return for your review and feedback, addressing any concerns, finalizing the tax return for review by a Senior Manager and Tax Agent, providing a digital copy for your signature, and invoicing. We maintain a ‘first in, first out’ approach to ensure fairness to all clients. While we understand this process may require patience, our dedication to delivering comprehensive and accurate tax returns without cutting corners remains unwavering. Your trust in Investax allows us to provide you with the best service possible, and we appreciate your understanding of the 4–6-week turnaround period.

Do you stay updated with industry-specific regulations affecting medical practitioners?

Absolutely, we are committed to staying abreast of the dynamic healthcare industry landscape, including its intricate regulations and ever-evolving tax laws. In fact, we’ve gone a step further by actively contributing to your knowledge base. Our team has authored numerous informative articles addressing crucial topics, such as recent payroll changes relevant to medical practices. Furthermore, we’ve provided insights into the optimisation of medical practices through the implementation of various ownership structures like Discretionary Family Trust and Company. Our dedication to industry-specific expertise ensures that not only are your financial strategies aligned with the latest requirements, but we also empower you with valuable insights to navigate the intricate landscape of the medical field effectively.

What specific services do you offer to medical practitioners?

Our services for medical practitioners encompass a range of solutions, including tax planning, wealth creation strategy in line with tax planning, best practice for practice management, bookkeeping, accounting, retirement planning, and more. We aim to provide comprehensive support to help you achieve your financial goals.

Are there any specific rules or restrictions when setting up a Bare Trust for SMSF property investment?

Yes, there are rules and restrictions to be aware of:
• The property held in the Bare Trust must meet the sole purpose test of providing retirement benefits to SMSF members.
• The Bare Trust cannot hold more than one property
• The Bare Trust must not be used for any purpose other than holding the property for the SMSF.
• The SMSF is the only entity that can benefit from the property held in the Bare Trust.

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