Hello All,
This is my first post as I just joined the site. I have been browsing the forums over the past year or so and it has helped me a great deal in getting started on my investment journey so thank you to everyone who regularly helps beginners like myself.
About a year ago my brother and I setup a company/discretionary trust structure with the intent to purchase IP's, and maybe shares in the future, with a long term goal of creating a passive income that would supplement our personal investments/superannuation.
We both live in Queensland however, due to a recommendation, we used an accountant in NSW to setup the structure. I was unhappy with the level of knowledge and guidance I was receiving from the accountant so I asked them to send me all of the documentation from the company and trust which I now have.
Since then I have been trying to find an accountant that is familiar with these sorts of structures and was wondering if anyone can recommend one? We would rather someone from Queensland that has in depth knowledge of the states laws regarding land tax etc.
Thank you in advance for anyone that takes the time to respond.
Kind regards,
Mitch
Hi Mitch
Happy to recommend someone to you.
Try Steve Hodgkinson who is with the Gold Business Group at Southport on the Gold Coast.
Steve has been my Accountant for 15 years and is an expert on property structures.
I have referred literally dozens of clients to him from the forum and he is a regular contributor himself.
Address
56 Davenport Street (cnr Davenport & Bay Streets),
SOUTHPORT QLD 4215Postal Address
PO Box 428, SOUTHPORT QLD 4215Phone: (07) 5532 2855 Fax: (07) 5532 4563 Email: [email protected] Cant guarantee what day they open but give him a ring in the New Year, tell him i sent you down.
Many good property Accoutants arent taking on new clients so mention my name (Dont worry i dont receive anything for the referral) and I am sure he can assist you.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Richard,
I will give him a call in the new year.
I am also a bit worried about getting my tax done for the company and trust. I have already done my personal tax (I realise now that I should get the trust tax done first) however the trust made a loss this year so this shouldn't be too much of a drama should it?
Thanks again for your help I really appreciate it!
Regards,
Mitch
Hi Mitch,
Welcome to the forum! Its a good idea to get your trust tax return done before your pesonal tax return as any profit distributions that are distributed to yourself will need to be included in your personal tax return. As l don't know all your personal details it would be hard for me to comment on your company and trust tax returns for this year. I would strongly suggest that you follow up on Richard's recommendation. I would have been happy to help you out but l am based in Melbourne and by the sounds of your situation it would be an idea to find an accountant in your local area.
Regards Maurice
Thanks for the advice Maurice,
Another quick question. Do I have to complete a tax return for the trust AND company every year or just the trust? I assume I can claim the cost of setting up the company (and yearly costs associated with it) when I fill out the company tax return?? Can I carry the loss forward (just for the company, I know I can do it for the trust) each year until the trust makes a profit and distribute some money to the company to offset the loss (I assume I could then gift the money back to the trust for further investment)?
Sorry for all the questions but I'm excited to finally talk to someone about this type of structure. Its been very hard to get valuable information given that I don't know anyone (personally) that invests in this way.
Thanks again,
Mitch
Maurice
Just to give you another option try MGA Accountants on the Gold Coast (ask for Mark Whitaker tell him I sent you).
Mark is a CA with an extensive insolvency background, as well as having been a business owner – something many accountants aren't or can't be. So he can relate to just about any challenge a structure or business needs in most tax environments. http://www.mgaacc.com.au/accounting#Topic1
Good luck who ever you try.
O
Olli,
I guess you were writing that for me so thanks. I will take the time to do some research on both.
Mitch
Sure Mark is a good guy also i just like to support people who give their time for free and contribute to the forum.
Steve certainly does that and as i say looks after my portfolio and has done for 15 years.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mitch,
As l don't have full knowledge of your situation and what has been setup for you. I can't give you specific answers to your questions. But l can give you some general answers but you would have to see your accountant to specific answers to your situation.
* A company will need to lodge a tax return each year it is in business
* The setup costs are generally claimable under “black hole” write off provisions. They can be claimed over 5 years or 20% p.a. Although l hear there might be a new ATO draft ruling for this which could change things.
* Company's can carry forward losses as long as they fulfil certain tests.Regards, Maurice
Hi Maurice,
Ok I guess it would be smarter for me to let an accountant handle the tax returns. I was under the impression I could claim all setup costs as an expense in the first year and carry the loss forward so I was thinking about completing my own tax return for the company (I assumed it would be easy as there is no income and only a few expenses).
As im sure you can tell I am still a greenhorn at this however it is a great interest of mine and I want to learn the ins and outs of tax issues relating to discretionary trusts.
A bit of background info: Im 23 years old, married with no kids yet. My wife and I have one IP in our name and my brother and I have 2 IP's in the name of a disc trust (trustee in a shelf company with us both as shareholders). At the moment all properties are negatively geared however we are planning reno's to the trust IP's to increase their worth and return over the next 6 months (we have already done the kitchen in one).
Over the next two years or so our plans are to subdivide one of the blocks (townsville house on 1200m3) and build a duplex and rent, continue renovating the two trust IP's and hopefully get into the US real estate market.
I am sure I will have many further questions to ask over the coming months/years and I look forward to contributing to these forums in the future. Any opinion/guidance would be well appreciated however I understand that any information on this site is given with no knowledge of person circumstances and should not be used without professional advice.
Regards,
Mitch
Does anyone know a good property accountant in any of these places: Emerald, Mackay, Rockhampton or Townsville. All of these places I can travel for with tax as live in a rural town.
There is no real need to actually meet your accountant face to face. It can all be done over the phone and email/fax these days.
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
I do always prefer to meet someone face to face initially as you can gather much more information about them than just over the phone. Body language and even the state of their office speaks volumes
Travelling too and fro to your Accountants office is a Tax deductible expense so they can be located anywhere if you prefer face to face contact.
I have a couple of forum clients who fly down each year from Townsville to my Accountant on the Gold Coast and combine it with a weekend on the Coast all tax deductible.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
have a couple of forum clients who fly down each year from Townsville to my Accountant on the Gold Coast and combine it with a weekend on the Coast all tax deductible.
Not entirely true. It is tax deductable but only the portion of the trip that is related to the investment. I.e. if you head to the Gold Coast for 2 days and spend one day with your accountant and the second day at leisure you should only claim back half of the trip.Remember you should complete your tax return as if expecting to get audited.
Mike
Hi Mike
Yes that is correct and that is why they schedule to see him on both days they are here.
Alternatively even if you stay a second day the flight is still deductible but not the second day of leisure.
Been doing it for a year or two.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for that guys
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