My partner and I are new to the property investment game and are looking for more information on investing as a company or trust. We're relatively high income earners and are looking for a way to reduce our tax bill.
We both earn six digit incomes from full time employment, and over the last 3 years we've cashed in on the mining boom and built a $2m residential property portfolio earning over $7k/week in rent. As we continue to invest, our marginal tax rates are steadily creeping up and up and up. At the moment our strategy has been to keep our properties and use the rental income to fund new investments, but in future we'll also look at selling after we develop.
Any advice relating to companies and/or trusts in terms of taxation, CGT, and ease of buying/selling/distributing profits would be greatly appreciated!
Kezia
Don't use a company as there are adverse tax consequences.
You will probably need to set up several structures revolving around discretionary trusts.
If you were in Sydney I could speak to you further about this.
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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