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  1. Terry_w

    Why it may be a good idea to use a company to own property

    Mry - can you elaborate on any potential problems that could arise here? I can see any legal issues.
  2. Terry_w

    Why it may be a good idea to use a company to own property

    yes yes yes. No auditing need, just a tax return, and annual ASIC fees of about $242
  3. Terry_w

    Why it may be a good idea to use a company to own property

    Yes, but you have to be careful with residency.
  4. Terry_w

    Why it may be a good idea to use a company to own property

    Today there was a land tax webinar conducted by the OSR (NSW). I asked the question if a company, with a husband as sole director/shareholder, would be considered a 'related' to a second company with a wife as sole director and shareholder and thereby aggregated for land tax purposes. The...
  5. Terry_w

    Why it may be a good idea to use a company to own property

    Not so. If someone inherits an investment property they will probably inherit the cost base, roughly, that you had. But this CGT would only be payable when the property is sold. 50% discount would also apply so the max tax would be 25% approx, but probably less and it may be 50 years after...
  6. Terry_w

    Why it may be a good idea to use a company to own property

    Thanks Blacky I get PMs and emails everyday asking is it a 'good' idea to use a XX to buy property? The short answer is you have to weigh up all the factors that are affected and then make an informed decision. It might be 'good' to own property in a discretionary trust from a tax point of...
  7. Terry_w

    Why it may be a good idea to use a company to own property

    This is new to me. Karking it (should it be a c or a k?) is usually tax free. Can you please explain?
  8. Terry_w

    Why it may be a good idea to use a company to own property

    No land tax threshold at all for a company owning land as trustee for a discretionary trust in NSW. But a company owning land in its own right would have a land tax threshold. On land worth $400,000 that could amount to a difference of $6,400 per year in land tax: i.e. Land on on company...
  9. Terry_w

    Why it may be a good idea to use a company to own property

    Yes. Directors don't hold company assets - the company itself owns the assets and is a legal person separate to the directors and the shareholders. It is the shareholders than own the company - which could be the trustee of a discretionary trust. Director could be sued in relation to...
  10. Terry_w

    Why it may be a good idea to use a company to own property

    You missed the whole point of this thread! See my first post so see why it could assist.
  11. Terry_w

    Why it may be a good idea to use a company to own property

    Keep in mind that I am not saying it is a good idea to have a company own property but that it could be a good idea in some situations only. Careful consideration is need by prospective company owners. RobG raises some good points too.
  12. Terry_w

    Why it may be a good idea to use a company to own property

    Companies and trusts would need to do tax returns in any event.
  13. Terry_w

    Why it may be a good idea to use a company to own property

    Who, me? No I am not referring to a company as trustee in this thread unless unless specified.
  14. Terry_w

    Why it may be a good idea to use a company to own property

    Blacky - your are right, if a company with an individual shareholder or a DT shareholder with the income flowing through to a person on the top tax rate they will be paying more tax on the income as well. i guess the flexibility of the discretionary trust and the ability to no pay land tax is...
  15. Terry_w

    Why it may be a good idea to use a company to own property

    No, it would be difficult to get around. Perhaps one company controlled by one person only. You would have stamp duty (if NSW) and CGT on the transfer of shares plus kill off majority of the asset protection in the short term. Best to not over complicate things by paying extra now!
  16. Terry_w

    Why it may be a good idea to use a company to own property

    Companies are generally not recommended for holding growth assets in. This is mainly because: 1. No access to the 50% CGT discount 2. Income does not retain its character - e.g. capital gains incurred by the company come out to the shareholders as dividends and no capital gains. But...
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