Offsetting CGT, Tax, etc...

[Longrass]

Builders so called 'discount' - he is charging you more for the other 5 so I would think you would have to average out the cost over the 6.

If using a company beneficiary then the company will pay company tax rate on the income = 30% whether capital gains or income. But once the money is in the company it loses its character so while it can be retained in the company and paid outin lawer years it won't be capital gains when paid out, but will be dividends.

Correct, however if the 6th was held in ones own name and the builder charged $1 to build it, technically the capital gain would be offset as a PPOR?

I understand your comments re money being stuck in the company.

 

[Paul@PFI]

Longrass...A trust that fails to distribute profit to a beneficiary pays a tax rate of 47%. If the trustee distributes to a "bucket company" thinking it saves tax then the final tax rate can be closer to 59%.....

59% results this way....
Co tax rate is 30%. But a shareholder has to receive the profits ? So a dividend is paid. Its Fully Franked. The uplift tax on this can be as high as 28.9% incl medicare levy etc...30% + 28.9% = 59%. Its a myth to suggest a bucket company saves tax. The full and final tax on the whole of the dividend stream must be considered.