Purchasing as a business

Viewing 4 posts - 1 through 4 (of 4 total)

Matt Jones
Participant
@mattjones
Join Date: 2005
Post Count: 170
April 18, 2005 - 1:05 am
Hi
I would like to know if ayone has any facts or opinions on whether it is better to purchase property with an ABN or as an individual. I am close to buying my first investment property and am hesitant to use my buisness as the purchaser since i rarely use my ABN as income source plus the nightmare in tax and BAS statements
Any thoughts?
Cheers,
Matt
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Derek
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@derek
Join Date: 2004
Post Count: 3,544
April 18, 2005 - 8:06 am
Hi Matt,
Certainly one for the accountant.
In a nutshell as a business/company you will not be eligible for any CGT discount which, if you choose wisely and sell, could be a large impost.
If asset protection (and there are tax benefits too) is a concern I would recommend so research on ‘trusts’ – this structure may be your best option from all angles.
Derek
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Terryw
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Join Date: 2001
Post Count: 16,213
April 18, 2005 - 1:40 pm
I am not sure you could use a business to buy property. A business is not a separate legal entity. It would have to be in your name or your company name.
Terryw
Discover Home Loans
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North Sydney
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Matt Jones
Participant
@mattjones
Join Date: 2005
Post Count: 170
April 19, 2005 - 4:15 am
Thanks Derek and Terry.
I thought i read in buyer beware that it was a good idea – must have been late one night.[rolleyesanim]
I agree with your responses and happy to not go that way since the tax and paperwork is not worth the hassle.
Cheers,
Matt
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