Lots of people are “signing up” for Family Trust.
Is that because they have a lot of assets and income coming in and want to minimize tax?
Well if so how much tax can they saved ? (assuming they have assets worth $2millions)I am looking at building my first IP and am wondering if I need one (a Trust) to minimize tax?
Lets assume here for a second that I love investing in property and this is what I do every year on top of my full time job.
What type/kind of Trust should I consider if I were to minimize Tax on all my properties (assuming I have few).GST and Tax:
Say I am building my IP, can I claim the GST charged by the Builder using the Trust?
Or should i have an ABN to claim the GST?I have just set up a trust and you need to have a tax file number as a part of the trust structure. (this is a discretionary trust)
Why do you need such a trust?
What’s in it for you?
I mean the adv of setting up such a trust.Hi New2invest
Have a look at this thread… may help answer some of your initial questions'
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4331667
I think the greatest benefits of a discretionary trust is the flexibility. Once you have purchased assets you cannot cahnge ownership structure without great cost. If you keep on purchasing in your own name you get stuck with the income – it may be small initially, but it will increase over time and is like a tax timb bomb!
If you have a trust you can constantly adjust who the distributions go to. eg. you could get the income one year and the next year form a new company and then distribute income to the company. later on you may have another trading company with a loss, so you could distribute to that company to offset the loss and save you tax etc. This wouldn't be possible if you owned via personal names.
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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