Benfeits of forming a business??

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From: Caren Temby


Hi everyone

We are about to embark on the purchase of our first property> Still lots of unanswered questions and I was hoping you could shed some light on one in particular...

Is there any benefit in registering a business prior to the purchase of our first property? I have read and heard of the perks of directing all costs into a business to reap tax benefits..
Is it possible to attain the same benefits simply by having an investment property, or are there extra opportunities if the property comes under a business?

Thanks
Caren
 
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Reply: 1
From: Dale Gatherum-Goss


Hi!

A lot depends upon your objectives, If you are looking to buy a number of properties and produce good growth and income, then, investing via a trust is probably the best way to go.

Alternatively, if you are looking at only one property, then, it's not worth the costs involved.

The facts determine what costs you can claim as a tax deduction. If you run the venture in a business like manner, then, you have a good chance of claiming a number of costs that would not ordinarily be available. If you're just trying to get tax deductions and can't be bothered with the record keeping and paperwork - forget it!

Have fun and good luck

Dale
 
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