Perhaps I needn't concern myself with anything more complicated than the basic family trust w/ corporate trustee structure until the need arises. I was just interested to know what people typically used.
Evan,
My understanding is that the problem arises if you need to carry over any additional profit from year to year beyond the $180k per person. Probably not a problem for most but still something I would like to understand.
Previously you could pay additional profit into the bucket...
Ah here we go, I found some images that explain what I mean in simple terms. And yes I was referring to the Division 7A rules.
Previously the popular structure was:
But I believe the preferred structure looks more like:
And this matches the response that Aaron has given which is...
As suggested, I am interested in knowing what is the typical company/trust structure that a couple would use for income streaming when starting a small business in 2014. I have been doing some reading and see that previously the bog standard structure was roughly:
Discretionary Trust as the...
Yes, so taking asset protection out of the equation it comes down to whether the additional deductions that are able to be accessed are worth more than the applicable setup/ongoing and stamp duty costs.
I will do some numbers on that.
The main reason for keeping the current property is to minimise transaction costs. The second reason for keeping the current property is that it saves me substantial time that would be used searching for an alternative IP.
The property was originally purchased to live in for a few years then...
I have been doing some more reading as I like to be a somewhat informed client before seeking professional advice. With reference to my earlier statement
Isn't this sort of transaction done frequently such that a typical scenario can be explained in this forum?
From my reading, it seems...
Thanks for your response Terry.
Unfortunately my lawyer wife does not specialise in Wills & Estates or Tax law. Her eyes glaze over at mere mention of the word 'trusts'.
I take it that a trust is unlikely to be a suitable structure in this scenario?
Are these questions best directed at...
The things I have learned from reading this forum these past few days.. Just wish I had read it a couple of years ago. Apparently seeking tax advice is something that everyone should consider doing before buying something as simple as their first home.
I seek some comments on my (not unusual)...