I have a meeting with my accountant on Friday and would like to go into it with my eyes open. What is the definition of an investor as opposed to a developer? I heard that a developer must have intent to sell? What are the different tax implications between the two?
Just looking into best set up for our current situation:
Currently - self employed (partnership). We have one house in NSW that is in personal names, one house in Vic in a family trust and waiting on settlement of another block of land in Vic (also in the trust).
Moving forward: We are subdividing the block (one title - three) and will build and hold on all three. (NSW and VIC houses were both build and hold).
What are the tax implications on the equity we pull out of the completed projects (substantial money in excess of $100K)?
There are 4 people who are part of the property investment, currently a unit trust with me as the trustee. Should I create 2 different companies - one for the business we currently run and one for the property investment? I'm getting so confused
Just looking into best set up for our current situation:
Currently - self employed (partnership). We have one house in NSW that is in personal names, one house in Vic in a family trust and waiting on settlement of another block of land in Vic (also in the trust).
Moving forward: We are subdividing the block (one title - three) and will build and hold on all three. (NSW and VIC houses were both build and hold).
What are the tax implications on the equity we pull out of the completed projects (substantial money in excess of $100K)?
There are 4 people who are part of the property investment, currently a unit trust with me as the trustee. Should I create 2 different companies - one for the business we currently run and one for the property investment? I'm getting so confused