JV trust / tax query

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

eilatan28
Participant
@eilatan28
Join Date: 2010
Post Count: 44
August 17, 2016 - 3:13 pm
Hi all,
Hoping someone might be able to point me in the right direction:
I have a group of woman who are interested in pooling funds to complete a purchase / (reno or development)/ sell project and splitting profits. I am imagining it would be best to do this under a trust structure ? with each person listed as a beneficiary??
If our funds were enough to cover deposit / legals (having everything drawn up properly), stamp duty and any reno or holding costs, is a trust able to apply for a loan ? or would each individual have to apply for their share of the loan ?
Same with tax time – Once profit is split, do we each individually claim our percentage of profit as income ? how is CGT calculated ?
Has anyone had any experience in doing this sort of thing before ? I know there are lots of things to be careful of doing JV’s but everyone is on the same page with what we want to achieve, but cant do it individually so are keen to work together. I know there is much more I need to learn, but I want / need a starting point.
All suggestions welcome please.
Thanks
Natalie
Colin Rice
Participant
@fms
Join Date: 2011
Post Count: 338
August 18, 2016 - 4:55 pm
Profits on renos are generally around the 20% mark if successful. Have you crunched numbers to see if it is profitable before proceeding with structures and the associated time and costs involved?
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me
Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 18, 2016 - 10:42 pm
Sounds like you need to get some serious legal advice. But in the mean time look at unit trusts and companies.
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
eilatan28
Participant
@eilatan28
Join Date: 2010
Post Count: 44
August 19, 2016 - 11:42 am
Not yet Colin, I want / need a starting point to learn more about it so I can work out if its going to be worth looking into it further. Thanks for the tip on unit trusts and companies Terryw, I’ll check them out. Yep I know there would be lots of legalities to consider, but where there is a will there is a way ….