Hi,
Has anybody looked into / used a Company to hold real property, with shares in that Company held by a Trust (ie either an individual trustee or Corporate Trustee)?
I.e. rather than buying in a trust directly, putting in the company under the trust - and having the company buy the property.
It seems that the plus side of doing this is that you can still stream income (albeit with franking credits) according to the trust deed, but you not have to pay the trust land tax surcharge?
Is this correct?
I do know that you would lose the CGT discount when it comes time to sell, but if you are never planning on selling cant see the issue and only upside.
Have I missed something? Thoughts?
Has anybody looked into / used a Company to hold real property, with shares in that Company held by a Trust (ie either an individual trustee or Corporate Trustee)?
I.e. rather than buying in a trust directly, putting in the company under the trust - and having the company buy the property.
It seems that the plus side of doing this is that you can still stream income (albeit with franking credits) according to the trust deed, but you not have to pay the trust land tax surcharge?
Is this correct?
I do know that you would lose the CGT discount when it comes time to sell, but if you are never planning on selling cant see the issue and only upside.
Have I missed something? Thoughts?