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lyndafranks
Member
@lyndafranks
Join Date: 2004
Post Count: 3
October 30, 2004 - 11:50 am
Company tax rate of 30% plus paper work of gst etc if it earns over 50k per year. Look at your marginal tax rate and compare. Also I believe there is a ruling on holding onto the property for 18 months. If longer, its treated as an investment, if shorter, it’s like a company and you get hit with more CGT. I strongly advise talking to an accountant about your financial structure. What you intend to do has legal consequences. You might want to look at trusts too.
good luck
dd
lyndafranks
Member
@lyndafranks
Join Date: 2004
Post Count: 3
October 30, 2004 - 11:30 am
Don’t know the book, but a subscription to Property Investor Mag is also useful. Be weary of some of the stats pages, but the articles are execellent.
One mistake I made was not purchasing my IP’s under a family trust which would protect the asset a bit better and even out the tax bill among family members. Depending on your position, an inbuild flexible financial position can go a long way to long term property investment.
dd
lyndafranks
Member
@lyndafranks
Join Date: 2004
Post Count: 3
October 30, 2004 - 11:23 am
Get your account to write a letter to at ATO to take less PAYG tax out of your pay checks. That way the ATO aren’t holding onto your money during the year to take the strain of your cash flow. The ATO doesn’t pay very good interest.
If you transfer existing property to trust’s or change name on the title, you will be up for a stamp duty charge. OPtions are limited.
Make sure you are claiming all possible deductions, especially depreciation. A good account will be able to guide you through this.
Please don’t panic and think you have to take a loss, hopefully if you need to climb out of the deal any capital gain will make up for cash flow problems. Good luck
dd