Before purchasing my first property would like to know how to go about registering the property in order to obtain Max profits.
For example -NG register in single name of person with highest gross income.
What would be the way to go for a +CF? Is it best to invest as a Single person or in a Partnership – What about Property Investment Trusts??? What are the tax implications likely to be?
Cheers [confused2]There is no register for property. You need to determine which name to put the property in. ie your own, you and spouse, a trust, or combination.
When considering things, take a long term approach. Putting a property in the name of the highest income earner may give you more tax deductions now, but long term what will happen if your rent goes up, and you sell for a large gain. Look at setting up a trust of somesort if you are planning to own a few more.
Terryw
Discover Home Loans
Parramatta
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terryw
Since posting my message have managed to find some more discussions around this point. Some people advise not to setup a Trust due to the large costs involved ( setup costs, Trust maintenance costs). Issues around getting finance, personal tax deductability, CGT and asset protection.
Are you able to shed some more light on this?Cheers
Mark
The real issue is whether spending some money now either gives you better protection or saves you more money down the track. Ed Chan in “Secrets of Property Millionaires” has some things to say about structures.
Establishing a trust can cost as little as $137.
Getting finance is no harder or different to getting a loan your self.
Personal deductions can be obtained by using a hybrid trust
Asset protection is very good with a trust.
CGT implications – with trusts the income retains its character as it flows thru the trust, so if the beneficiary is an individual they will get the discount. Am you can chose the individual to distribute the money to, potentially saving you thousands of $$$$$$
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.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
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