Just curious as to the potential benefits or losses of creating a joint venture company with myself and another to purchase properties
as opposed to doing it as an individual.ie
is there advantages in purchasing properties under your created companies name?or is it better to just do it as an individual?
I’m thinking tax write offs, lower loan requirements and so forth.
G’day…
The company won’t die on your clients…you may.
Get good legal advice, may be costly short term, however…in other words
” Build on a firm Foundation “..BOAFF.remember it.Billfromoz
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Just curious as to the potential benefits or losses of creating a joint venture company with myself and another to purchase properties
as opposed to doing it as an individual.ie
is there advantages in purchasing properties under your created companies name?or is it better to just do it as an individual?
I’m thinking tax write offs, lower loan requirements and so forth.
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Angelus,
It’s all about asset protection. There are a number of ways to structure your IP activities and as “Billfromoz” suggests, get good legal advice.
Your accountant can develope a structure for you that protects your assets against debt recovery etc. and in most circumstances can deliver tax advantages.
It will always come down to your situation as the cost/benefit of any structure is dependant on your circumstances. To set-up the right structure can be costly but the benefits of security and tax advantages can pay it back quickly.
See your accountant (I am not an accountant).
Good Luck
Milkman.Hi Angelus,
Check out these topics it might help you to understand bit more.
cheers
Amithttps://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2740
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2337
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2731
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2647
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2554
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2493
Hi Angelus
You can enter into a joint venture in your personal name or setup a company as the joint venture vehicle.
If you are looking for tax write off’s, the joint venture agreement should be in your personal name as any tax losses are likely to be trapped within a company. Also, any capital gains on the property are taxed at a reduced rate in your personal name.
I would rarely recommend holding assets within a company structure.
Cheers
John
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