We own a few investment properties and we dont know whether to form a company or what to do.
We have some properties in our name and some in the trust.
Where do we go to from here?Would appreciate any advise.
AlpalHi Alpal,
The key to avoiding or minising land tax is to understand the ‘rules’ as they relate to the state in which you invest.
Some states have a single threshold which does not differentiate between an individual/company/trust ownership whereas a number of state do have different hreshold and do differentiate tax rates between the different owning entities.
An ‘easy’ solution is to spread your investment portfolio around the various states in order to ‘stay below’ the various thresholds.
I would suggest you do a google ‘land tax’ search and get the various fact sheets and see what they say.
In saying all of that – an option may well be to accept that land tax is a part of ‘doing property business’ and include it in your costs. Don’t loose sight of the reason for investing.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Thanks Derek,
Appreciate your comments.
Alpal
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