Just about to purchase first IP prop Should I purchase it in my name company or trust?????
My understanding is that – it depends on what you want to achieve and your finacial circumstances.
As an Individual – you get 50% CGT discount [if you hold your property for 12 mnths] but then may be restricted with future finance if you wuish to B&H and borrow for many future IP’s;
As a company – borrowing should be easier – but there is no 50%CGT discount
Trust: 50%CGT discount s/be available as long as prfits from sale distributed to individuals + can create new trust if your borrowing is maxed out.
Thanks for the reply I plan on holding and purchasing more.
My suggestion is for you to talk to your accountant with the view of setting up a Trust structure.
As an aside – Steve’s program “Wealthguardian” may be something you may want to look at.
Good luck
Please speak to an accountant before you sign. once you sign it may be too late to change.
I would suggest a company be out of the question, and you should look at a discretionary trust or a hybrid trust if you need to negative gear.
Terryw
Discover Home Loans
Mortgage Broker
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
Steve spent sometime at the Sydney masterclass going through “at a high level” the benefits of setting up the compaany/trust hybrid solution.
He definitely gave use something to think about if we are planning to purchase several properties. Since then, we have spoken to our acccountant and they have informed us, that for our goals and situation, this is a positive option for us.
So, like everyone else says – speak to your accountant, but rest assured that Steve does spend the time spekaing specifically about it.
Hope that helps,
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