fjficm

if you distribute money to the company, and get taxed at 30%, if you then give that to yourself as a dividend, you will still pay your marginal rate of tax on it.

I guess if you were planning on reinvesting, you could distribute to the company, who would then lend it back to the trust to reinvest.

Bearing in mind that that money then becomes an asset of the company, which can be called upon by creditors etc. etc.

Cheers
Mel

Hi Corinne

You need to have some fun – but not if you throw away your future ‘fun’. I guess you should work out what you want to do, and how much it will cost, and see if you’re happy to spend that much, and maybe pay down some of the other loans with what’s left over.

It’s really a personal decision, but I wouldn’t want to blow the whole lot if that left me at square one again…

Cheers
Mel

I’m glad it’s got a little quieter. I’m anal, and want to real ALL posts, so when I missed a week and a half at Easter – let’s just say I’ve only just caught up!![blush2]

I also hate to see any questions go unanswered, so even if it’s the 33rd time I’ve answered the same question, I’ll give it a go. Maybe there should be a big welcome note which says ‘Before you post, read this’ – and it tells you how to search for your answer, to save asking it again if it’s already out there….

It also seems that people’s patience (I can’t find the word I want, so it’ll do) is less than it was, and so there’s a little more acrimony than there has been in the past.

Maybe it’s time for the site to undergo another major upgrade, and force us all to go and get a life for a couple of days[laughing]

Cheers
Mel

Good stuff[specool]

Awwww, I love a happy ending[inlove]

Cheers
Mel

Smooth, I agree with what the others have said.

You should possibly consider setting up a trust for yourself – check out Trust Magic by Dale Gatherum-Goss http://www.gatherumgoss.com for a full understanding of how trusts work.

To have a partnership with your friends, I agree with Terry that a unit trust is probably better than a company. That structure provides for any income to ‘flow through’ the trust into your family trust (if you have one and it owns the units), and then you can distribute/spend and pay tax. With a company, it would have to pay tax before distributing to you guys – so less flexibility.

As to the money you guys could now ‘earn’ from your company, perhaps you should take it as salary, and then lend it to your family trust, who will then buy units in the Unit trust which will invest.

Really read up on how trusts work, and talk to accountants as to the best way to structure it – both for now and the future – especially if you’re going into partnership with others.

Cheers
Mel

UNLESS you are buying in the ACT….

Cheers
Mel

This financial year I have sold two properties, with a total CG for me of $120K (roughly). I’ve only just done my tax return for 02/03, but I am showing a loss of $107K. Carried forward to this year, my income was about $62K with leave all paid out etc., so adding my $60K (half of the $120K) to the $62K = $122K, BUT then I get to subtract the loss carried forward, ie $107K = new income of $15K. This will be wiped out by all the depreciation and other deductions I have for this year, so I believe I will carry another loss forward to FY 04/05! Could even sell another property, but I don’t like selling……

Oh yeah, the big loss is from depreciation, and a whole bunch of stamp duty that I paid on property purchases in the ACT ($100K with partner in 02/03) which is tax deductible!!! Gotta love ACT purchases….[]

Cheers
Mel

Stingray, do you have an offset account? I’m guessing not. Could you look into setting one up? then you could leave the money there, and if you redraw to spend on lifestyle from an offset it won’t matter, but from the loan it will…

Alternatively put it in a short term Cash management account and look for property no 3!

Cheers
Mel

Hey Redwing, I forgot about that option. I don’t use it though, because I read all the threads, and prefer to click on the left button to move to the next thread.

I think if you wait for it to take you back to this post, you are then also sitting in the most recent post, and so can’t just click on the next one that you were up to….. Anybody as confused as I am by what I have just written[biggrin]

Cheers
Mel

Marco, isn’t it business owners who refurbish buildings to make it up to standard for themselves generally?

RE Child Care, I would definitely check if they have everything in place – approvals and standards are extremely stringent. If they have, then it might be a goer, and even if they fall over, there is always massive demand for childcare places, so someone may take it over – ABC (he’s on the Rich 200) own a ton of centres around the country – not that I would put my kids in them, they’re more out to make money than to keep the kids and staff happy. there’s quite a few loopholes I have found out – how a childcare centre can make almost double the money that it should – LEGALLY!!

Cheers
Mel