Forum Replies Created
Check out:
http://sites.ninemsn.com.au/minisite/property/services/propertyqa/default.aspAgain it is Steve, but this is his points/views etc….
…Beware of the dreamtakers…
Check out some other posts such as
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1359
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1172
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1217They deal with the costs/benefits a bit…
Pete
…Beware of the dreamtakers…
Just briefly the set-up costs of setting up a company are around $1000 plus accounting fees. There is also the ongoing fees associated with companies as they have to loge tax returns annually which are around $550 (all costs depend on acocunt)
In regard to TAX reductions, you sure can. That is one of the biggest benefits of having a company. As you can deduct a lot under a company structure, that individuals can’t. However companies are not allowed to claim the CGT benefits such as 50% reduction that individuals are..
Hope this sheds a little light..
Pete…Beware of the dreamtakers…
On simple face value they seem to meet the ’11 second solution’…so good job. It sounds promising….
Pete
P.S. If you dont take them up let me know (shoot me an email) and I might be able to do something with them and get you a finders fee – [
]…Beware of the dreamtakers…
I cant really answer your question but I can offer a similar project Real Estate Guru Dolf deRoos, a RichDad Advisor, is backing/organising in NZ
http://www.propertyventures.co.nz/
I know it doesnt really help you Gatebe7 but it is another similar avenue people can look into..
Pete.
One more idea….
Try ‘Concise Corporations Law’ by Julie Cassidy
She was my lecturer at Deakin Uni and is sensational. Again its more aimed at students but covers everything from formation to directors duties to other entities etc.
It is published by The Federation Press (www.federationpress.com.au)
Another idea is if you can get to a universities bookshop at some point. They have huge selections, at reduced prices (subsidised) and also second hand books….
Cheers
PeteTry http://www.butterworths.com.au
They are legal book publishers and produce some great resources…they are more aimed at students but nonetheless they are good and informative.
Pete
Hi getting there –
Is it a real estate related product?
I second TheENJOLady’s comment…Its a great resource Steve and Co.
If I had it during UNI it would have made my TAX LAW subjests a hell of a lot easier…
Pete
Ok…its a little early here so my brain isn’t at full capacity…
But I am a little confused by
quote:
is the CGT the same in a trust within a company ?Are you saying the trust is the beneficiary?
In this case no, as the profits are taxed at their level and they are not entitled to a 50%discount. However if another beneficiary was an individual they would be entitled to the discount on thier portion of the profits…Hope it answers your query…
Pete
One other tax benefit i forgot to add was CGT.
As the trust profits are distributed, the
a CGT discount is also avaliable. That is, if the asset is owned for more then 12months a 50% discount of that profit is allowed.Where as Pty Ltd’s are not entitled to any CGT discount…
Cheers
PeteJust to start the creative juices flowing….
One benefit of owning income producing assets in a trust is the TAX advantage, in that all income is passed on the the trusts beneficiaries and then taxed at there marginal tax rates. Whereas all income a Pty Ltd makes is taxed at 30%.
Pete
I actually have no idea if this would legally work and the concequences of it but wouldn’t it be possible to put a “and/or nominee” clause into the original purchase contract and then get them to simply assume the contract for your purchase price and just give to the difference as a kind of finders fee???
Pete
Mu understanding is that all you would need to do is get a solicitor to write up a 2nd mortage contract.
Carleton Sheets – a US ‘guru’ talks alot about this is his programs….
http://www.nodownpayment.comPete
Well, firstly congrats on getting your feet wet. Did you actually have a question or query?
Anyway, did you get a rental guarantee from the developers to confirm the $270/300 rent level?
Either way, congrats..
Pete
Ok as far as I am aware, although this is an extremely common practice in the USA its a lot harder to complete here.
My understanding is that Aussie Banks don’t have what they call fully assumable loans here, that is there a clause in the loan contract which states that the loan cannot be assumed by another person. so basically the only thing you can do is refinance the loan – possibly under a new persons name.
However, I heard a rumour a while ago that Westpac or National had a fully assumable loan in the pipe works. I think I heard this at a Vendor Finance Assoc. meeting or I may have dreamt it..
Either way its a great way to purchase property extremely easily and/or cheaply, particularly if the vendor is close to defaulting on their current loan..
Pete
I am having trouble wording this response..so please bare with my jumbled reply….
The tax department look at the issue from a physical time standpoint rather then a tax period standpoint. That is you must be physically be receiving assessable income from the asset (IP) prior to being eligible for deductions.
Basically, all costs incurred prior to purchase (or gaining assessable income) are classified as a capital expenses and possibly allowed to make up some of the cost base of the asset when calculating the capital gain made on the asset.
So basically in that case you outline, even though in some scenarios, you look,purchase and receive income all in the same tax year is only coincidental. It actually has to happen in chronological order, unless your circumstances are that similar to those proposed in TerryW’s post.
Hope this helps…let me know if it didnt answer you question…
Also there are ways to claim previously unclaimed deductions.Speak to your accountant on that one, it has +/- side-effects…
Cheers
PetePAYDAY rocks….that simple.
I actualy started playing that before I ever played Monopoly…I had the kids verision and really enjoyed playing it with my parents when I was young. Good education base…
Pete
TerryW
Good point…I would have to agree with you on that one.I can’t see why this would not be allowed…
Pete
Hey Andrew,
I was there today too, actually as a volunteer staff member…even though i wasn’t able to hear Roberts entire presentation, as usual I found it inspiring..
Your thoughts? Enjoy yuorself?
Pete
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