Say my plan is to buy old houses, hold them for at least 3-5 years, and redevelop them into duplexes, units, etc.
What does everyone think of this structure:
1) Family trust with corp trustee to initially buy the houses
2) In 3 years (say) sell to a development company (owned by another family trust)
3) Potentially setting up a separate building company to contract for the building
The main issues I'm seeing is making sure I can claim the CGT discount (which I wouldn't be if I was classed as a developer), keeping the property separate from the liabilities of building, and making sure gains can be distributed in the most tax effective way.
Alex
What does everyone think of this structure:
1) Family trust with corp trustee to initially buy the houses
2) In 3 years (say) sell to a development company (owned by another family trust)
3) Potentially setting up a separate building company to contract for the building
The main issues I'm seeing is making sure I can claim the CGT discount (which I wouldn't be if I was classed as a developer), keeping the property separate from the liabilities of building, and making sure gains can be distributed in the most tax effective way.
Alex