Everyone seems to be pointing towards a company owned trust for owning property.
What if my intention is to neg gear and sell for a higher cap gain in the future?
How does the co+trust compare with personally owning in this scenario?
eg if owned personally, can get back 48.5% of losses, and pay only 25% tax when selling.
What would the numbers be like under a company/trust scenario?
Many thanks
Wrappack,
If you use a unit trust & lend your personal money to the trust, you can negative gear just as if the property was in your own name.
Trusts can accumulate losses over a number of years and spread profits across different beneficiaries, making it much easier to minimise CGT.
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
You can negatively gear using a trust (eg Hybrid Discretionary Trust) and this will also help you reduce CGT when you sell as well.
Trusts do not pay tax, but merely distribute all income and CG to the beneficiaries. If you have many beneificaries (or even some) on low incomes, these taxes can be reduced dramitically!!!!
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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