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  • Profile photo of amanclamancl
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    @amancl
    Join Date: 2007
    Post Count: 1

    Hi,
     if you look at a trust to place your IP in you can reduce your tax to 30per cent – well if I am correctly interpreting what my accountant said to me. You can allocate funds to people or entities in your trust. Entities may be a business. What you are trying to do is avoid capital gains tax when you decide to eventually sell the property which would be 46.5% after the cost base is deducted from your sale price. If you sell after 12 months you can receive 50% deduction in capital gains unless youa re claiming the home as your primary residence – if you have rented it out at any stage it will reduce your ability to do this, proportioning then occurs. Within a trust it also protects your assets from loss, ie being sued or loosing it to a divorce etc. An accountant can fix it up for you for a bout $400 and you need to do it beore you buy your next property.

    I am just about to do it – I think it is a good idea for protecting your assets later on. Cheers A

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