Hi guys
I was hoping that someone on the forum could offer me some advice.
Over the last few years I have been involved with a business venture which has been reasonably successful up until now.
Unfortunately over the last few months my company attempted to expand without success resulting in the company now having a significant loss this financial year (ie. in the vicinity of 700K). As a result of that failure I am no longer in a position to continue with the business.
However given that I have a significant loss sitting with the company I am looking for alternative as to how I may utilise those loses through a potential sub division project.
I have my own home as well as an investment property which I have allowed family to live in for a number of years now.
The investment property was purchased in my own name (ie. 15 years ago) and has never been claimed as investment property as far as the ATO is concerned.
Over a number of years I have always considered sub dividing the property and building two separate town houses. However up until now given my other business venture I just hadn't had the time or the opportunity.
Due to the recent events and the fact that my company now has a significant loss sitting with it. I thought there maybe an opportunity to sub divide and build the town houses through my company in order to reduce the tax which maybe payable with a sub division project.
example:
1. Transfer the property from my name to that of the company and then undertake the sub division.
2. Through the company build the town houses and claim all the associated GST
3. Off set any capital gains taxes (ie. as a result of the sale of the townhouses) through the business as a result of the 700K loss that the company has
Does anyone have any thoughts if this maybe viable and what I may or may not be able to do and the tax benefits if any given my situation.
Cheers
I was hoping that someone on the forum could offer me some advice.
Over the last few years I have been involved with a business venture which has been reasonably successful up until now.
Unfortunately over the last few months my company attempted to expand without success resulting in the company now having a significant loss this financial year (ie. in the vicinity of 700K). As a result of that failure I am no longer in a position to continue with the business.
However given that I have a significant loss sitting with the company I am looking for alternative as to how I may utilise those loses through a potential sub division project.
I have my own home as well as an investment property which I have allowed family to live in for a number of years now.
The investment property was purchased in my own name (ie. 15 years ago) and has never been claimed as investment property as far as the ATO is concerned.
Over a number of years I have always considered sub dividing the property and building two separate town houses. However up until now given my other business venture I just hadn't had the time or the opportunity.
Due to the recent events and the fact that my company now has a significant loss sitting with it. I thought there maybe an opportunity to sub divide and build the town houses through my company in order to reduce the tax which maybe payable with a sub division project.
example:
1. Transfer the property from my name to that of the company and then undertake the sub division.
2. Through the company build the town houses and claim all the associated GST
3. Off set any capital gains taxes (ie. as a result of the sale of the townhouses) through the business as a result of the 700K loss that the company has
Does anyone have any thoughts if this maybe viable and what I may or may not be able to do and the tax benefits if any given my situation.
Cheers
