to invest as Pty Ltd or individual?

Viewing 6 posts - 1 through 6 (of 6 total)

jeffjeff
Member
@jeffjeff
Join Date: 2004
Post Count: 4
October 11, 2004 - 10:12 am
Hi. Any comments on the preferred structure to operate an investing concern? Would it be better to trade under a company structure or have assets held in an individual’s name? (It’s the same individual anyway
What would the ramifications be if I was to transfer ownership of (investment) property from one to the other at a later point?
Comments regarding ease of obtaining finance under both systems would be useful too…
Thanks,
Jeff.
westan
Member
@westan
Join Date: 2002
Post Count: 1,950
October 11, 2004 - 10:32 am
Hi Jeff
the problem with a company structure is a company doesn’t get the 50% discount on Capital gains tax. It think the better structures would be either in own name or in a trust structure. Often it also depends on the type of property you are buying, for example do you want to negatively gear the property losses again you personal income you maybe better buying it in your own name???? It comes down to each situation is different. Look throughout this forum for topics on trusts.
Regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 12, 2004 - 6:26 am
Neither – look at trusts.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
October 12, 2004 - 6:31 am
Terry took the words out of my mouth.
PTY LTD has no advantages.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
3 year fixed rate – 6.85%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Abby
Participant
@abby
Join Date: 2004
Post Count: 42
June 15, 2005 - 3:22 am
Hi all
I attended the Perth Masterclass on the weekend and subsequently have been looking through here for topics on trusts. At the seminar, Steve discussed having a (parent) company over (in their case) family trusts. Can someone please explain what the necessity of having a company as against having only the trust/s in place? What is the relationship of the company to the trust? Do companies/trusts require new (separate) ABN and TFN’s?
Thanks in advance
Abby
cata
Participant
@cata
Join Date: 2005
Post Count: 559
June 15, 2005 - 6:56 am
Abby
A trustee is liabile for anything that goes on in the trust and therefor is able ot be sued. If you are the trustee then that makes you liable. If there is a $2 non-trading company(with no trading history) as trustee then all that is at stake is $2. Not worth sueing for.
Yes they need TFN, and an ABN if the trade.
CATA