Forum Replies Created
Thanks heaps for all your replies Terry
I don't think I have been very clear in my babblings
Currently I have a Partnership, because of our depreciating assets we currently pay zero tax and I want to keep that advantage.We also have come in contact with many people who have no conscience when it comes to ripping people off or pulling them down and therefore would also like to have the safest business structure possible to protect our assets.
I was advised to set up a Company to trade with and a Trust with all the assets in it. With the Company trading as itself but as trustee for the trust also. I was told if someone Sues us we would be the sole directors of a company that owns nothing & they can’t sue the Trust because we are beneficiaries only, and beneficiaries cant be sued…
From your previous advice I have gathered it would be better to only have one Director, and also not to have the company as a trustee for the trust or this puts the assets at risk in the trust? Did I understand that correctly??
And also that I can't use the depreciating assets in the trust to offset the income from the trading company. Is this correct?
I was just wondering what would then be the best thing to set up for us to protect our assets while still taking advantage of the depreciating assets to offset our business income??
Thankyou very much
Can anyone give me any advice…from what I understand…there would be no way to set up something that could offset taxable income with the depreciating assets while at the same time protect all the assets from anyone who decides to sue / seize assets.
Or if there is a way I would sure like to hear about it!!!!!!!!
Also in regards to transferring assets into a company or trust from a partnership, which are already depreciating, would I still have to pay stamp duty for these? Plus I have recently taken over a new property with assets which I will declare this tax year as depreciating for the first time so if I were to add these for the first time to a trust or company I am assuming there would be no transfer / stamp duty??? Is this correct, plus the assets we lost in the flood, and no longer have, is there a way of still claiming what was owed even though we will have closed the partnership and no longer have these assets to transfer to the new company / trust?
In regards to having a company trading and as trustee for the trust which just holds the assets , is it true that this would not effectively protect my assets held in the trust, and also that the trust will benefit only from the depreciation not the trading company as trustee?
Any advice would be great as I need to do our tax return and would like to know before I add all our new assets from depreciation into the current partnership or quickly open a company and trust instead.
The position I would ultimately like to be in one where we can continue to offset our business income with our depreciating assets and also have the assets protected from being sued, we have not been sued or anything but the way some people have dealt with us we feel we need to protect ourselves.
Re: the current claw back laws, would this be a vulnerability only if we were sued before we changed from Partnership to Company or Trust??
Great advice, thankyou very much for your help. So…from what I understand…there would be no way to set up something that could offset taxable income with the depreciating assets while at the same time protect all the assets from anyone who decides to sue / seize assets.
Or if there is a way I would sure like to hear about it!!!!!!!!
Also in regards to transferring assets into a company or trust from a partnership, which are already depreciating, would I still have to pay stamp duty for these? Plus I have recently taken over a new property with assets which I will declare this tax year as depreciating for the first time so if I were to add these for the first time to a trust or company I am assuming there would be no transfer / stamp duty??? Is this correct, plus the assets we lost in the flood, and no longer have, is there a way of still claiming what was owed even though we have closed the partnership and no longer have these assets to transfer to the new company / trust?
In regards to the company as trustee thing, I understand from what you have said that it would not effectively protect my assets held in the trust, and also that the trust will benefit only from the depreciation not the trading company as trustee, or is this only if the company is not a trustee that the trust is taxed independently?
Sorry for all the questions but your help is great!!!
Hi there, I am hoping for some advice…
I have a business which is a partnership. We currently have a lot of assetts and our business doesn't pay any tax at the moment because of the depreciation. However, we feel we are at risk if we were to be sued, someone could claim our assets.
We were thinking of opening a company to trade with, with my husband and I as sole directors and at the same time a Trust to hold all the assetts with my husband and I as beneficiaries. We would then trade under the Company as trustee for the trust.
I am not sure if this would be beneficial in the ways we need…
Our main goals are:
1) Total assett protection.
2) A continued ability to offset the trading income with the depreciating assetts.
3) Minimum tax rates and associated fees.
Also we have lost a large amount of assetts during the QLD floods, and have gained a large amount again now to be depreciation newly this tax year so I would like to set this up so we can claim the remaining depreciation loss from the old assetts somehow still and also include the new assetts into the new trust rather than transferring them in order to save costs? Would this work??
Any advice would be GREAT
