Forum Replies Created
4 year claw back on bankruptcy.
If you are not in a high risk industry and dont forsee yourself going broke you can still transfer to trust. You would need to do it asap, so your 4 years will be up. If you leave it in your own name your are still the in same situation, that you can loose it. You will have to pay stamp duty and CGT as you said, but the end benefit will outweight this. If you transfer I wouldnt develop it for at least the claw back period if not longer as developing is risky.Regards,
Brad
Callaughan Partners | Accountants & Business AdvisorsYou always need to get the structure correct from the begining and be prepared to pay for the setup and cost involved, it will save you money down the future.
Buying in a discretionary trust, you cannot distribute the losses, so therefore there is no tax benefit to yourself. In NSW you will also be up for Land tax.
If you are buying to reduce your tax (negative gearing) then you will need to buy in your own name or use a hybird trust, it is costly to setup and you will also be liable for Stamp Duty, but it is has the negatively gearing benefit along with asset protection and the benefit later down the track when the property becomes positive. Just becare when setting one of these up.Brad
Callaughan Partners
Accountants and Business Advisors
Advice is general in nature.Hi Janebell,
I'm an Accountant in Sydney if you still need help please look up our website http://www.callaughanpartners.com.au and get intouch with myself. For these sort of problems you need all the facts before trying to give any advise.
Brad
Callaughan Partners
Accountants & Business AdvisorsHi Cam,
You should sit with an accountant who can talk you through the structuring side of things. Just quickly. You have a corporate trustee for asset protection, it should be a $1 company and that is all. You will need to have another company to distribute to as a beneficiary for tax purposes. The Benefit of this is keeping your tax payable within the 30% bracket. The company pays the tax and can pay you a dividend each year that is fully franked out of the profits provided you are within the 30% bracket yourself, otherwise leave it in the company.
Hope this helps.
Brad
Callaughan Partners
Accountants & Business Advisors
