G’day,
I am looking at purchasing a property and placing 6 apartments on it. I am looking purely for capital gains on this first investment, and for the foreseeable future with any further investments.
I am wondering if i am best to invest in this as an individual or to set up a company, for taxation reasons.
It would be great if somone could give me any advise or personal experiences in this matter.
Thanks in advance for your help.
Ryan
Acompany is usually not a good idea for growth assets as there is no 50% CGT discount available. You should probably use a trust structure. You will then have maximum flexibility in minimising tax by distributing to a wide class of individuals and then a company if need be, capping the tax rate at 30%. Remember individuals have a max tax rate of 48%, so this works out to be 24% after the discount.
Construction of 6 units is also much different to building one house, so you should seek expert advice.
Terryw
Discover Home Loans
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Max Tax rate is actually 46.5% ($150K >) inclusive of Medicare levy but whats a percent and a bit amongst mates.
The concept is still the same why pay more than you need to in CGT if you do decide to sell them.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
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