Best tax structure for owning multiple IP's

[Kiwibaz]

Hi,

I'm looking for advice or suggestions on that would be the best, in terms of tax, structure for the ownership of multiple investment properties.

We are currently building 3 house's on a block in partnership but when it is all finished we will have ownership of our PPOR and then 3 and 1/2 IP's. From here we want to invest further, but have been hearing things like asset protection, trust etc ect and are not sure where to go.

Personally I'm in the top tax bracket and the wife is one down so we are keen to not add much more to our personal incomes.

Thanks

Baz

 

[Rixter]

What's best for you to do is go and run your particular situation past your chosen tax & asset protection professional.

Everyone has different objectives, employments status's, incomes, and personal risk profiles so you will get a variety responses here.

Only then can you get a better understanding of the options available to you & which structure is best suited for your needs.

There is no one size fits all.

I hope this helps.

 

[Kiwibaz]

thanks rick,

am going to do that but was just kinda throwing it out there to get a few ideas so i can discuss different ideas with my accountant and fin planner.

Baz

 

[Aaron_C]

Family Trust with corporate trustee and company beneficiary.

 

[coastymike]

With each individual owing a unit following completion then it would be better if three units with corporate trustee held the land as tenants in common. Things you will need to look at include.

1. Deed of partition
2. Unit trust agreement

The problem with a family trust holding the property is that when the units are transferred to the other parties you will have tax to pay on the transfer , stamp duty and gst. This can be mitigated with a three way unit trust structure and properly drafted deeds of partition.

Discuss with terryw. He knows how to structure and finance this sort of stuff. Www.terryw.com.au

 

[Aaron_C]

The proper answer is there is no simple answer.

 

[Terry_w]

For future properties a unit trust with units owned by a discretionary would be very good. Ideally a unit trust per property.