Hi,
I am a newbie who is interested in setting up a company with a friend to develop property and then sell for a profit. I am struggling around the accounting side of things and have seen two accountants who haven't been very helpful. The questions I would like answered are as follows:
1) In regards to the 30% Company Tax, is the 30% applicable to the Profit only after GST has been paid or is the 30% applicable to the sale price?
2) If I do set up a company, once we have our profit, if we were to withdraw the money out of the company, does this get further taxed? And if so at what rate, especially given that we've already paid the 30% company tax?
4) What are the tax differences between doing this as a company or family trust. Which is the most advantageous given that we want the money at the end to spend rather than reinvest.
5) Is setting up a company the smartest tax option, especially given that we want to buy, develop and sell within an 18 month window?
Any assistance or recommendations re a good property accountant in East/South East Melbourne would be greatly appreciated.
Cheers Kathy
I am a newbie who is interested in setting up a company with a friend to develop property and then sell for a profit. I am struggling around the accounting side of things and have seen two accountants who haven't been very helpful. The questions I would like answered are as follows:
1) In regards to the 30% Company Tax, is the 30% applicable to the Profit only after GST has been paid or is the 30% applicable to the sale price?
2) If I do set up a company, once we have our profit, if we were to withdraw the money out of the company, does this get further taxed? And if so at what rate, especially given that we've already paid the 30% company tax?
4) What are the tax differences between doing this as a company or family trust. Which is the most advantageous given that we want the money at the end to spend rather than reinvest.
5) Is setting up a company the smartest tax option, especially given that we want to buy, develop and sell within an 18 month window?
Any assistance or recommendations re a good property accountant in East/South East Melbourne would be greatly appreciated.
Cheers Kathy