After the structure my accountant suggested got trashed, I thought I would d ask how everybody else structures their negatively geared properties?
Plan at this stage is to buy and hold capital growth properties about 8-10 years (barring expected high growth after or low growth prior) *or* to buy, subdivide and sell with plans after a year or two.
After I got back to the accountant on the issues with the other structures, he also suggested the usual suspects. Now I have to make a decision and none are ideal.
Holding property in higher income holders name (hubby) (for a 2-3 properties max) . Gets tax deductions, taxed higher when selling. Asset protection would be limited to keeping the property highly leveraged, which was the plan anyway. We do have our PPOR in our names though. Would it be worth changing it to my name only in this case?
Hold in company structure. Can negatively gear. Shares and income can be seized. Director can be sued (would we want me as director?) . Would provide a little protection. Can't access CGT discount. Thus is his recommendation if not going with previously outlined one.
The usual discretionary trust with corporate trustee. Can't negatively gear but can quarantine them. May go positive in future, maybe wasting it as only slightly positive income would have to be offset? Maybe better if holding property for only a year or two?
Unit trust - he didn't mention this
Really want to consult a great property accountant but hubby would say no. He wants to use his.
So what does everyone else do?
Thanks
Plan at this stage is to buy and hold capital growth properties about 8-10 years (barring expected high growth after or low growth prior) *or* to buy, subdivide and sell with plans after a year or two.
After I got back to the accountant on the issues with the other structures, he also suggested the usual suspects. Now I have to make a decision and none are ideal.
Holding property in higher income holders name (hubby) (for a 2-3 properties max) . Gets tax deductions, taxed higher when selling. Asset protection would be limited to keeping the property highly leveraged, which was the plan anyway. We do have our PPOR in our names though. Would it be worth changing it to my name only in this case?
Hold in company structure. Can negatively gear. Shares and income can be seized. Director can be sued (would we want me as director?) . Would provide a little protection. Can't access CGT discount. Thus is his recommendation if not going with previously outlined one.
The usual discretionary trust with corporate trustee. Can't negatively gear but can quarantine them. May go positive in future, maybe wasting it as only slightly positive income would have to be offset? Maybe better if holding property for only a year or two?
Unit trust - he didn't mention this
Really want to consult a great property accountant but hubby would say no. He wants to use his.
So what does everyone else do?
Thanks