Buying property using a company

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From: Glenn .


G'day

I am new to the property game and was hoping to get some advice. I am looking to buy my first investment property in the near future and have heard that some people set up companies which they buy their properties through. Are there advantages to this? How do you go about it? Any help would be most appreciated.

Thanks

Glenn
 
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Reply: 1
From: Dale Gatherum-Goss


Hi

I believe that companies are not the best structure in which to own IP's primarily because of the lack of flexibility and the loss of CGT exemptions when you eventually sell the IP. A trust is much better.

Having said this, the company is still a good way to own IP's simply because it changes your focus to one of a business and this allows you to claim so much more as tax deductions.

Good luck

Dale
 
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Reply: 1.1
From: Glenn .


Dale

Thanks for the advice. Very much appreciated. Can you tell me about trusts? Please excuse my ignorance but this is a steep learning curve for me. Perhaps you may know of some books I can read on the subject.

Thanks

Glenn
 
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Reply: 1.2
From: Glenn S


Dont you still loose the 50% reduction in CGT for a trust as well as a Co.?

Glenn
 
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Reply: 1.1.1
From: Dale Gatherum-Goss


Hi

Without being rude, may I suggest that you look through the archives as this is a topic that has been covered on a couple of occasions. However, if you cannot find much, please let me know and I will try not to bore the list with the same old stories.

Cheers

Dale
 
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Reply: 1.2.1
From: Dale Gatherum-Goss


Hi

No, discretionary, or family, trusts are still eligible for the 50% CGT exemption as the laws that you are thinking of were scrapped. Trusts remain the preferred entity in all the professional reading that I do.

Dale
 
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Reply: 1.1.1.1
From: The Wife


Dale is going to come and talk to the freestylers group meeting on the 27th of this month, in Melbourne. Theres quite a few of us with nice big long lists of questions :eek:) Trusts seem to be head of the topics.

TW
~Life is a daring adventure, or nothing at all~
 
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Reply: 1.2.1.1
From: Glenn S


Are there some good WEB sources of information regarding Family trust structures in Australia?

Glenn
 
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