Setting up a Private Company to buy properties

Viewing 4 posts - 1 through 4 (of 4 total)

ajayayyar
Participant
@ajayayyar
Join Date: 2005
Post Count: 176
January 27, 2012 - 5:49 am
Hi all,
Are there any advantages to to setting up a private PTY LTD company if you are buying investment properties?
I own 4 at the moment and wanted to find out if there are tax benefits or anything else in doing this.
Would be great to know your thoughts.
cheers,
ajay
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 27, 2012 - 10:32 pm
Not really. You will end up paying more tax as companies are charged a flat rate of 30%. Also no 50% CGT discount available.
Look at discretionary trusts instead.
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
ajayayyar
Participant
@ajayayyar
Join Date: 2005
Post Count: 176
January 28, 2012 - 12:19 am
Thanks Terry.
Anywhere in particular I can find out more about discretionary trusts?
Terryw wrote:
Not really. You will end up paying more tax as companies are charged a flat rate of 30%. Also no 50% CGT discount available.
Look at discretionary trusts instead.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 28, 2012 - 4:36 am
Just do a google and you will find heaps.
Then try http://www.trustmagic.com.au
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