All Topics / The Treasure Chest / Company vs. Entity tax deductions
What are the tax implications should I choose to begin a company and trade under it’s trust fund.
Have I many more tax deductions that I can claim?There are generally more deductions available to a company or a business than an individual.
For some unusual ones (eg alcohol) see
http://www.gatherumgoss.com/business.htmTerryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw
Had a look at th sight, theres some interesting deductions to keep in mind.
Can you clarify the advantage of setting up an IP in a trust
TrishUsing a trust allows you to distribute any income at your (or the trustee) discretion to any beneficiary of the trust. If you buy in your name only, you are stuck with all the income. Beneficiaries are usually listed vaguely such as any current, future or past spouse, any children or future children, step children and grandchildren. So you may have potential beneficiaries that aren’t even born yet! You never know how your circumstances will change.
eg. Say you were working and your spouse wasn’t. If you had $6000 in positive rental income, you could simply distribute all of this to your spouse and no tax would be payable.
Another major benefit is asset protection. Holding assets in Trust means they are not really yours, so if you are sued, those assets are protected (to a certain degree).
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw
Thanks for your answer. They are different to Tennant in common contracts cause you have to stipulate the breakup percentage, is that right whereas trust guess you can see how the year has gone and distribute any money according to you incomes.
Are trusts espensive to set upTa for your help
Trish
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