All Topics / Creative Investing / Selling my unit to my company?

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  • Profile photo of beachesboybeachesboy
    Participant
    @beachesboy
    Join Date: 2006
    Post Count: 6
    October 5, 2006 - 7:07 am

    If I did this could I sell it for $1 and claim a capital loss? But also miss out on stamp duty?

    Reason I’m thinking of doing this is because I know companies are able to take out much larger loans (I’m looking at purchasing a commercial lot in the future), pay less tax, insurance wise and are better suited to larger transactions?

    Just a thought, let me know if you have done it or if it can be done.

    beachesboy[suave]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    October 5, 2006 - 12:36 pm

    I dont think you have thought about the consequences of your post.

    Without going into great depth:

    1) Where they are related parties or the OSR believes that it is not an arms length sale then the Stamp Duty is based on the valuation.

    2) Why would you sell a unit to a Company for less than it was worth. Ok sure you could personally claim a capital loss but the company would be liable for a larger Capital Gain when the property was onsold and the interest deductions would be non existant. Dependant on the date the unit was purchased by you then CGT maybe neglible anyway.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner.
    Ph: 07 3720 1888
    [email protected]

    Richard Taylor | Australia's leading private lender

    Profile photo of gmh454gmh454
    Member
    @gmh454
    Join Date: 2003
    Post Count: 537
    October 6, 2006 - 5:52 am

    Back to the drawing board and do some more research. If you were a professional and advised on that you would need a Prof Indemnity the size of the Tassie budget to cover you.

    Really basic errors

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 8, 2006 - 3:50 pm

    And why do you think companies can take out larger loans than individuals? The lender will want a personal guarrantee for the directors – this will be based on their personal incomes.

    The loan size will also depend on the value of the property

    Terryw
    Discover Home Loans
    Parramatta
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Viewing 4 posts - 1 through 4 (of 4 total)

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