All Topics / Legal & Accounting / Dual occ, company title, help!

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  • Profile photo of forrestdforrestd
    Member
    @forrestd
    Join Date: 2004
    Post Count: 3

    I’ve been researching company title for a few weeks, most of posts relate to purchasing an IP under an existing company title development (ie acquiring shares in a company giving right to occupy).

    However I’m looking to develop a company title development from scratch which means I need to set up the company and acquire the land under a company name. I’m doing this because local council regulations prohibit strata under 900sqm (proposed block is 650sqm). Apparently company title is the only other means to emulate strata for the dual occupancy I wish to build. In any event I’m not worried about company title exactly.

    The end game is to live in one of the duplex units and rent the other.

    I’m aware of the negative implications with company title (sale prospects, finance issues etc) however as mentioned there is no other way really; another path is to establish the project under my own name – single title – and still claim deductability for the rental side, however this has issues with resale (can’t sell one seperately, worth less etc).

    Faced with acquiring and developing the property under a company name, I’ve therefore research ‘buying IP under company name’ and found a few interesting/scarey threads! It seems there are possible CGT implications etc.

    Summary: I am the person establishing the company and property. I am a company director guaranteeing finance, and the company owns the land/building right?

    Presumably I am thereafter issued with shares just like anyone else buying into an existing company title development? Would those shares be allocated to me personally? And for the purposes for negative gearing and CGT would it be treated as if I was just buying a regular IP? So very confusing….

    thanks for any pointers!

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485

    Where are you trying to do this?

    cheers

    brahms

    Profile photo of forrestdforrestd
    Member
    @forrestd
    Join Date: 2004
    Post Count: 3

    its in Randwick NSW. I’m really after resolution on the company title/shares/CGT issue.

    Profile photo of forrestdforrestd
    Member
    @forrestd
    Join Date: 2004
    Post Count: 3

    anyway i spoke with 2 accountants, a specialist trust/tax accountant today AND the ATO. Seems nobody can answer.. the ATO CGT expert wants me to write in for a personal ruling, yay (not).

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