Forum Replies Created
Shar,
I feel shouldn’t really post too much (to avoid showing my ignorance) as I’m still learning but the reason I am looking at a company structure is firstly they could be more flexible in transfering ownership without triggering depreciation recovery ie you can just sell shares rather than the property. Secondly I am trying to figure out if I can retain the profits within the company in NZ and use them to re-invest in other properties etc. (probably basic company accounting stuff) So avoiding paying out taxable profit dividends to me as a Aussie resident/shareholder. If you lived in NZ the dividends are CGT free under LAQC structure and likewise if the company makes a loss it can be passed onto the shareholders – I dont know if the loss can be passed onto Aussie shareholders?
I believe there may be risks with company structures in getting double taxation, in NZ then OZ, though – this is my current research topic!Whatever I choose its a great way to force yourself to buy lots of properties – just to get back your investment in setting these structures up!
Shar,
Don’t worry I started the other thread and am still totally confused and in the same situation as you, waiting to buy property in NZ but wanting to get the right structure first.Your concern over a sham trust (a massive topic in itself) could be answered in a book I just read called “Success with Trusts” by Ross Holmes – a NZ book. I dont know the answer to your concern but I am guessing it may be about your intention of the trust to preserve you investment for future children not yet listed as beneficiaries. This would need to be documented in the Trust minutes early on. But hey, I would expect your trust lawyer would tell you that. I got the feeling lawyers I got quotes from just wanted the fee to set it up. That book had some good pointers as to what you should get for your trust $$$ like templates on how to enter trust minutes etc.
I dont think we can avoid paying any tax here in Aussie as at the end of the day we earnt $$ and owe the government some! I guess Trusts are for long term asset protection, not tax avoidance.
I am now looking down the path of a LAQC whose shares are owned by the trust – just to confuse things even more!
Guys,
great to finally see some replies that snowballed. I stopped checking for a while as I didnt see anything.The lively debate still seems to me that its not as clear cut as I hoped but as I am orginally a kiwi, have family and potential beneficiaries there and could possibly move back one day, then a trust could well be the way for me to go.
As Steve McNight has warned I feel like I’m suffering from Analysis Paralysis and just want to get on with it but I figure if I setup a trust from day one I can keep all the investments (that hopefully snowball) within the trust, then I will be better off.
The only other thing that anyone left checking this thread might answer is should I have an NZ LAQC that the trust owns the shares of? I’m getting myself confused as to why but thats just a structure I have seen referred to before
Thanks again for all your responses!
