Hi guys,
I own a 2br strata title unit in my name that I currently live in. I would ultimately like to rent it out and place it under a company name for obvious reasons. Can someone fill me in on any implications that would arise in doing this. Can I simply roll such an asset into a company, or do I have to actually sell it to the company and pay all the associated costs?Also, does anyone know a good accountant in Wagga Wagga???
Thanks,
SpankyAge doesn’t negate effort – you can never be too young or too old.
Originally posted by Spanky:Hi guys,
I own a 2br strata title unit in my name that I currently live in. I would ultimately like to rent it out and place it under a company name for obvious reasons.What are the obvious reasons?
Most accountants and financial experts advise against holding property in a company for a number of reasons (loss of 12 month halving of CGT for starters).
What is your rationale for wanting to hold property in a company structure? Unless you’re actively trading properties or developing and selling, I cant see why you’d want to do this.
Jay.
Spanky
Yes you need to sell it to the company, but have you considered a trust. You can protect an asset outside a trust( not selling it in to the trust) but the unit will still be in your name, for tax purposes. Or sell it to the trust if you want the trust to own it.
Why do people need an accountant that works near them? My accountant is in Melbourne and I live in Brisbane and we have never met face to face. My point is you do not need an accountant, solicitor ect. that is near you.
CATA
Asset Protection Specialist
[email protected]Thankyou both for your speedy replies.
Jay, sorry my reasons were not so obvious. I currently have no intention to sell the property in the forseeable future, so CGT is no issue. By using it as an IP, my council rates, strata levies etc. become tax deductible. Also, if it is owned by a private company of mine, should I go bankrupt (this is certainly not a goal of mine, but I’d rather be prepared for anything than to have to deal with it should it happen) the companies assets cannot be used to pay my personal debts. The property would also become a capital base for the growth of the company.
I know this is very basic and sketchy, please fill in any gaps for me or correct me if I’m wrong, after all I’m here to learn.
Cata – a good point about living near your professional advisers – how did you find your accountant??? Also, I know very little about trusts – where can I find out more info??
Thanks again,
SpankyAge doesn’t negate effort – you can never be too young or too old.
Spanky
I was refered to my accountant by a good friend, tried him and was very impresed with his knowledge.
As for trusts, there is a number of people on this site you could talk to, ask people in a forum or e-mail me.CATA
Asset Protection Specialist
[email protected]
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