Hi everybody,I'm a long time reader but first time user and I was hoping I could get some feedback with my situation.
My wife And I have 8 IP'S,all purchased after1998, with an approx. equity of $1.3m.We currently have a business which is in the 30% tax bracket and being in our mid fifties we are thinking about how to fund our retirement.Do we sell all the IP'S and pay the CGT while still having the business or should we look at other options to reduce our tax commitment or could someone recommend an advisor that could help in Melb. east suburbs.
ThanksHi
I think you need some professional help – from a tax expert. Maybe try http://www.gatherumgoss.com in Melbourne.
There are potentially many ways you could go such as:
– sell one property per financial year, reducing tax
– borrow the equity in retirement without selling
– transferring ownership of your business to a discretionary trust
– sell business, keep properties (small business tax concessions)
– etcThe way you go may depend on how it is set up now, your incomes and how much you actually need each year.
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
Hello folino54
In the next few years ( until 2012?? ) at your age you are able to make a tax deductible contribution of up to $100K each to super. This means that you can wipe out most/all of any CGT you would need to pay on the sale of any of these IP's.
Putting these funds into super (maybe SMSF ?) will earn you income which attracts a very nice tax break…currently 10% tax and after retirement 0% tax.Just something to consider.
I agree with Terry. You need professional advise from an accountant specialising in this area.
Hope this helps
ElkaThanks Elka,
Your suggestion sounds good.
Most of my properties are in the lower price bracket , so I don't think there would be much trouble selling them in a depressed market. Investing into super should be good soon with hopefully the stock market regaining some lost ground.
Any suggestions for an advisor would be appreciated.
Personally I would start with going to an accountant knowledgeable in investing and retirement planning rather than just a financial planner.
Most financial planners ( including the one I went to ) will just get you into managed funds which may be good soon but is not the only asset class to consider. Most will not consider direct property.I don't know the people Terry recommended but have seen their name mentioned on this forum before.
Looking at their site, they say they do all the things you need and the first appointment is free.If you do decide to go and talk with them can you please post your impressions.
Cheers
ElkaHi Folino, I would go to 2 or 3 accountants and advisers before deciding what to do as each person may give you a little better advice.
This is what i normaly do and it may cost 3 or 4 hundred dollars to do this but it can save you tens of thousands of dollars depending on the way you set everything up.
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