Hi All,
I have been working away for the last year at sub-dividing my land and completing a full reno on my PPOR (same property)…throughout this time I have been collecting all of the receipts relating to the expenses incurred.
My end goal is to create a Property Trading Company, which buys and sells stock, pays the 10% GST, bypassing any CGT.
Is there any way I can use the expenses already incurred for my current development for a business that i'm about to create, which hasn't yet been set up (eg: can I claim money back that I spent 6 months ago, even tho my business wasn't created at the time i spent the money ??)…
Thanks in Advance.
Cheers,
Darren
Not sure why you would want to by pass paying CGT – unless you are selling within 12months. Companies pay a flat rate of 30% tax, whereas an individual would pay 46.5% – if you keep for more than 12 months this is halved which is less than the company rate. But I am not suggesting you buy in your own name, but should consider using a discretionary trust.
GST will only be payble on new or substantially new residential property.
You may be able to claim expenses for a company that isn't set up yet if the expenses were incurred on behalf of the company – better check with your tax advisor.
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
Thanks Terry – just to clarify, eventually the business will be turning over stock within a 12 month period – hence the reason for setting it up this way.
Cheers,
Darren
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