All Topics / Help Needed! / How to purchase IP

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  • Profile photo of SPTSPT
    Member
    @spt
    Join Date: 2004
    Post Count: 10
    October 22, 2004 - 2:29 am

    Hi all

    I was just wondering how every one else has purchased their IP’s, whether under your own name or under a family trust.

    If we had of purchased under our own name there would be tax breaks, as any maintenance can be deducted off personal income by effectively reducing it. But with a trust, which is taxed at 33%, this can not be acheived. I can see the advantage under our own name if the IP is negative geared, but as ours are positive cashflow and we want to reduce debt as soon as possible to increase trusts net worth, our family trust purchased the IP’s directly.

    Is it best to invest under a trust as we have, with no tax break or personally, with the tax break?

    What are the advantages/disadvantages either way.

    Regards

    SPT

    Profile photo of geogeo
    Member
    @geo
    Join Date: 2003
    Post Count: 1,194
    October 22, 2004 - 5:50 am

    This has been discussed many times previously so do a search on it – you’ll find the answers your after.

    Personally, I would recomend sitting with an accountant do discuss the structures with you as I believe you have it wrong. It is better to have your IP’s under a Trust rather than under your individual names.

    Regards,
    George.

    I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how

    Profile photo of SPTSPT
    Member
    @spt
    Join Date: 2004
    Post Count: 10
    October 22, 2004 - 6:15 am

    Thanks George

    As mentioned, I have actually got our properties purchased by our family trust. This is where I was wondering if we have it right, how others have there’s positioned and for what reasons.

    I will do a search.

    Regards

    SPT

    Profile photo of PropertyGuruPropertyGuru
    Participant
    @propertyguru
    Join Date: 2003
    Post Count: 1,502
    October 22, 2004 - 6:17 am

    Trust don’t pay any tax.

    Look into Hybrid trust.

    As Geo said we have discussed this a lot please use search options.

    Good luck!

    Cheers
    PropertyGuRu [sultan]
    Mortgage Consultant
    [email protected]

    NZ loan pre approval from austrlia in 48 hours

    Profile photo of SPTSPT
    Member
    @spt
    Join Date: 2004
    Post Count: 10
    October 22, 2004 - 6:23 am

    Thanks Property Guru

    What do you mean Trusts dont pay tax. I thought they are taxed at flat 33%.

    Regards

    SPT

    Profile photo of PropertyGuruPropertyGuru
    Participant
    @propertyguru
    Join Date: 2003
    Post Count: 1,502
    October 22, 2004 - 6:32 am

    Trust distributes profit to beneficiaries only. And then beneficiaries pay tax as normal. If you buying negative geared property than Family trust is not a good idea.

    Cheers
    PropertyGuRu [sultan]
    Mortgage Consultant
    [email protected]

    NZ loan pre approval from austrlia in 48 hours

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

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