Property development structure question

Hi - my husband and i have dabbled in property developments of which i have paid the tax personally in my own name and paid a lot of tax. what would be the best way forward in setting up the structure... (can't have the income split to my husband over the next couple of years)

we want to buy land (with or without permits) engage a builder - sell the units - move on. minimise tax payments preferably on profits. possibly retain some property in our superfund - as our superfund balance increases.

advice would be appreciated.
 
dev in your own name is certainly the worst idea, as all income is now on the revenue account, you can't channel it anywhere plus you would have been forced to register with an abn - removes flexibility
 
This is like asking what should I eat for dinner - answer is it depends...

You would probably want a company in there to limit liability and a discretionary trust to allow flexibility for tax reasons. How you structure this and the inner set ups will depend on who is involved, where the property is, short and long term plans and tax situation of all involved.
 
Ok - sorry a little bit more info.

My income is currently minimal (looking after kids). Husband over $100K.
My husband and I would be involved in the developing - we would source the land, get plans and permits - and contract a builder to develop, sell the developments.
We would buy the land and develop - short term. Possibly the goal long term is to retain a property in our superfund that we develop. Eg: if we build four townhouses - we would purchase 1 in our superfund to retain for long term at market valuation. Superfund is in our joint names.

Possibly then as the capital increases do multiple developments at a time.

Does this help ?
 
Not really. need much more info.


Do you own any assets?

Has your superfund got enough money to do this without borrowing?
 
This thread probably should not have ended up in the coffee lounge, anyways..

Have a chat to an accoutant about this, preferbaly someone who has experience in property development.
 
Lots of issues...

Dev ...Almost always on revenue account. Restructuring so that profits aren't personally earned could be a solution but all family needs to be considered. Company gives a lower tax rate but comes with other problems and costs.

SMSF...Could be a problem but maybe possible but if its done incorrectly it will be a breach. A serious breach of s66 of SIS which says acquisition from a member or an associate, relative etc is prohibited.

Personal advice is necessary. Get it wrong and the highest penalty is gaol / taxing of 49% of the fund. Happy to discuss privately.
 
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