Is it true that if you set up a Company with a hybrid trust to purchase property and then sell that you pay 100% capital gains tax as opposed to a lower rate if you sell in your own name?
I am not sure. Companies do not pay CGT. Any capital gain is just taxed at company rates – 30%. Individuals get a 50% reduction in CGT if the asset is held more than 12 months – so the tax would be around 25% if on the top tax bracket.
With trusts the income and/or capital gains is just distributed to the beneficiaries. Having a corporate trustee may mean that the 50% discount is not applicable, but from my understanding I beleive that they CGs would just pass to the beneficiaries who then pay tax at their own rate.
I may be wrong (I do not have a corporate trustee for my trusts).
Terryw
Discover Home Loans
North Sydney
[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
Ummm… No. With a trust you pay 15%.
Rgds.
Lucifer_auLucifer, where do you come up with 15% from??
Terryw
Discover Home Loans
North Sydney
[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
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