All Topics / Help Needed! / Pty Ltd Company

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  • Profile photo of demkeldemkel
    Participant
    @demkel
    Join Date: 2006
    Post Count: 49
    January 6, 2007 - 9:59 am

    Hi All

    Do Pty Ltd Companies have to pay CGT when selling an IP or Reno?

    If so, how much?

    If the Company pays Company Tax does it also have to pay CGT.

    Thanks for any comments.

    Regards

    Demkel

    Profile photo of bridgebuffbridgebuff
    Participant
    @bridgebuff
    Join Date: 2006
    Post Count: 189
    January 6, 2007 - 10:19 am

    A company does not get any CGT concession. You have to pay tax on the whole gain.

    Income in companies is not differentiated as rent, CG, etc.
    At the end of the year if the company made a profit you have to pay 30% in tax. You normally also have to pay GST of 1/11 of your total sales.

    It is very important that you talk to your accountant about this.

    Profile photo of demkeldemkel
    Participant
    @demkel
    Join Date: 2006
    Post Count: 49
    January 6, 2007 - 8:49 pm

    Thank you Bridgebuff

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 7, 2007 - 3:11 am

    Hence the reason before you purchase a property your structure needs to be right.

    You need to decide whether the property is to be a long term buy and hold or a short term buy and renovate and sell.

    Once you have estblished a plan you merely buy the properties in the appropriate entities.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    January 7, 2007 - 12:24 pm

    Always should consider a discretionary trust to minimise any tax and to protect your ass.

    Terryw
    Discover Home Loans
    [email protected]
    Send an email to get my newsletter.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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