All Topics / Finance / Buying as a company / trust

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  • Profile photo of ambskunkambskunk
    Participant
    @ambskunk
    Join Date: 2003
    Post Count: 8
    June 2, 2004 - 10:14 pm

    Hi all,

    With all this talk about buying multiple properties, I have not been able to find much information on how to legally do this as a company/trust.

    With the basic premise of positive cash properties being the generation of income, I can see how it is better to be taxed at a company rate of 30% rather than the max personal rate of 47%.

    What I am not too sure on is, why you wouldn’t want to do it (if you have multiple properties) and how to go about setting up a company or trust (I don’t really know much about trusts either! [glum2])

    Can anyone suggest any good websites/books on the topic, or suggest some ideas.

    Thanks,
    Andrew.

    Profile photo of GreatPigGreatPig
    Member
    @greatpig
    Join Date: 2004
    Post Count: 284
    June 2, 2004 - 10:32 pm

    Andrew,

    As someone who has just recently been studying this same issue…

    Dale Gatherum-Goss has a couple of good books on trusts and tax issues called “Trust Magic” and “Tax Battles”. You can order them by sending an email from his Website:

    http://www.gatherumgoss.com

    They’re cheaper if you buy both at the same time.

    Chris Batten also has some useful information on his Website, but you have to subscribe to be able to download most of it.

    http://www.chrisbatten.com.au

    The basic idea though is that trusts are more flexible and provide better asset protection.

    Plus beneficiaries can still use the 50% CGT rule, so even someone on the top marginal rate is only paying about 24% CGT. Companies pay 30%, after which it’s still company money, not yours.

    GP

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 3, 2004 - 1:30 am

    You can create you own trust at http://www.lawcentral.com.au for $275. But it might be better to get some advice first.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of ambskunkambskunk
    Participant
    @ambskunk
    Join Date: 2003
    Post Count: 8
    June 3, 2004 - 7:48 am

    Thanks GP and Terry,

    I had a very quick look at Dale Gatherum-Goss’s website and from the list of contents, those books look like they are exactly what I’m after.

    I was thinking originally a company was the way to go, but I’m leaning towards trusts.

    Guess I have a bit of reading to do!

    Thanks again,
    Andrew

Viewing 4 posts - 1 through 4 (of 4 total)

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