company setup

From: Kevin B


I am looking at setting up a company to own 2 new town houses $500000 each So the company would have assets of 1 million.I want to work out a loan to equity balance for the company so that company can utilise all deprecation allowance and have poitive income.If the company has a negative tax position because of deprecation etc can this be carried over or is this lost
Thanks in advance for info
 
Last edited by a moderator:
Reply: 1
From: Dale Gatherum-Goss


Hi Kevin

The company can carry forward losses indefinitely until such time as it makes a profit.

Personally, I would not use a company, but, a trust instead and good luck either way

Dale
 
Last edited by a moderator:
Reply: 1.1
From: Kevin B


Hi can any one give the current views on company or trust for property ownership.Iknow it's been done in the past but how do things line up now
thanks in advance
 
Last edited by a moderator:
Reply: 1.1.1
From: Dale Gatherum-Goss


Hi Kevin

There has been no change to these views.

A company is inflexible and will cost you more money in the long run, whereas, a trust allows you to effectively chose the rate of tax that you want to pay on your profits.

A trust has better asset protection facilities.

The wealthy have used trusts for many years and continue to do so.

Dale
 
Last edited by a moderator:
Reply: 1.1.1.1
From: Paul Zagoridis


Actually there has been no change to these views for those of us who favour trusts.

Actually the pro-personal ownership people still hold to their views as well. But the misguided are always inflexible. ;-)

Kevin, owning in a company has a few current drawbacks:
1) Someone has to own the shares so they effectively own the property
2) Eventually you get to deal with dividends and all their implied rules.
3) Shareholder loans! Oh my!

Companies are for trading businesses. Trusts are for investments.

On 8/2/02 8:27:00 PM, Dale Gatherum-Goss wrote:
>Hi Kevin
>
>There has been no change to
>these views.
>
>A company is inflexible and
>will cost you more money in
>the long run, whereas, a trust
>allows you to effectively
>chose the rate of tax that you
>want to pay on your profits.
>
>A trust has better asset
>protection facilities.
>
>The wealthy have used trusts
>for many years and continue to
>do so.
>
>Dale


PaulZag
Dreamspinner
WealthEsteem :: Psychology of the Deal
http://www.wealthesteem.org/
Damn! Server down at this messages post time?!?! Why?
 
Last edited by a moderator:
Top