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JH
Member
@jh
Join Date: 2003
Post Count: 6
September 3, 2003 - 6:52 am
Brett,
Is this what your accountant recommend?
I believe there’s real risks associated with this structure. You never know when you will be liable for damages arising out of your contracting work. When you have a house under the company name, people are much more likely to sue you.
Plus then there’s the CG tax exemption you don’t get.
I believe most actively trading pty ltds aim at holding as little asset as possible. sometimes not even their own plant and machinery – they set up another pty ltd and have the trading company rent the equipment from that other company.
Perhaps your situation merits your option if so please enlighten me.
Quote:
taking half the earnings as a salary. By doing this i invest with cash that’s only had 30% tax paid rather than 48% tax.
JH
Member
@jh
Join Date: 2003
Post Count: 6
August 12, 2003 - 4:55 am
I heard of trust being sued by beneficiaries for unpaid distribution. But I only “heard”, nothing to substantiate. Tho it sounded legit.
People and relationship change overtime, and people are influenced by people. Your lovely neice may one day have a boyfriend/girlfriend who is a lawyer and discover that she may sue you for unpaid distribution from a trust entered in the book many years ago.
Some people’s family perspective changes when they know they could potentially have $1m in the bank…
Sons sue fathers
Nephews sue uncles
Ex girlfriends sue ex boyfriends
The list goes on.
JH
Member
@jh
Join Date: 2003
Post Count: 6
August 2, 2003 - 9:09 am
Am I missing the obvious here? If you have $400K cash, can you not:
1. Buy a house for yourself to live in for $400K or under (pay outright)
2. Take out an investment loan using the house as security
3. and use the loan as deposits to finance other investment purchases?
In theory, assuming you buy a house worth $400k, you could borrow $320K (80%). With $320K as 20% deposit, you could finance $1.6M worth of properties. All you lose is the leverage of the first $80K.
You don’t pay rent, and interest on ALL loans are tax deductible.
Did I misunderstand the tax law or are we talking about that first $80K which gets tied up on the house if you buy a house for youself first?
JH
Member
@jh
Join Date: 2003
Post Count: 6
August 1, 2003 - 2:02 pm
My goal is to be a ski bum. Ski all over the world. Ultimate desitnation: Hokkaido and Alaska. Yes, telemark, backcountry, the wild stuff. When I don’t ski, I spend time with my gf/wife/kids or go to karaoke till 4am.
And my aim is really quite simple: Net $100K/year. Not that hard to achieve, I don’t think. Just starting out is not that easy… so to speak.
Once you have $100k/year, it’s probably not much more effort to make $200k/year. that’ll cover my wife’s side… that is if she can’t be bothered doing it herself.
The way I see it, owning X number of houses doens’t mean much if you don’t have a passion in life. Unless of course your passion is to own houses, which to me seems pretty sad.
JH
Member
@jh
Join Date: 2003
Post Count: 6
July 29, 2003 - 4:12 am
oops and my email is [email protected]. Many thanks.
JH
Member
@jh
Join Date: 2003
Post Count: 6
June 23, 2003 - 11:06 pm
I think salary sacrifice isn’t a very productive way of saving tax for people who still have many years left to withdraw from Super fund. But then I suppose people can argue any share fund you choose should be a long term investment anyway.
JWalker