Hi,
My wife and I currently own two investment properties with the titles in our individual names. We are looking to increase our property portfolio but would like to know whether it would be more beneficial taxwise for us to purchase them in a trust or company name? Also would it be better to transfer the title of the others into the same entity too?
Thanx
David77Hi David77,
Not being an expert nor advisor I believe that you should firstly have your reasons for investing and the strategy that supports this established.
From my reading both here on the forums and elsewhere tax avoidance is illegal therefore whatever you are planning to do is not purely for the purpose of avoiding tax but for other reasons such as asset protection or estate planning.
From an asset protection viewpoint I believe that the more firewalls or moates you can create the lesser the chance that those legal eagles will be willing to support going for you and your assets.
There are an awful lot of different types of trusts and I am not aware of there being a one size that fits all. Seek appropriate professional advice from either an asset protection specialist or a legal advisor who specialises in trusts.
The transfer of the properties will give rise to possible Capital Gains Tax, Stamp Duty, Land Tax and probably financing costs.
aquila
“Dare to be Different – earn, spend and then pay tax – control without ownership “
Transfering titles can be expensive, with stamp duty and CGT. There are tax benifits in trust and taxavoidnceis illegal, but tax minimisation is not.
‘If you pay more tax than you have to, your a bloddy idiot”
Kerry PackerCATA
Asset Protection Specialist
[email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
