Went to have a chat to a local accountant today regarding possible structuring of our investment properties for most effective taxation (We are yet to buy and IP but are working towards it very soon).
We have a simple scenario, I am a PAYG employee, wife doesnt work, 2 small children. We intend to buy IPs on a long term buy and hold stratergy up to 20+ years.
He basically said a family trust with a $2 company as the trustee, my wife and I as directors of the company was our best bet. If we purchase a positively gear IP to purchase in the family trust, if we buy something that is negatively geared I should buy it in my name for negative gearing purposes.
He said a unit trust is no good as it generates a CGT event to transfer the units.
He thought new or near new properties we the best investment due to deprication.
He didn't know the current land tax threshold in NSW, nor whether we'd get the threhold with the family trust (this was a bit of a red flag for me as I already knew the answer before I asked the question).
When I asked about what tax deduction could the trust get that wouldnt be available when buying IPs in a personal name he was somewhat vauge.
I feel like I haven't been given the best adivce here and will seek out another accountant for a second opinion but just thought I'd see what others thought. How do you decide whether a professional you are speaking to is really giving good advice or is just trying to sound like they know what they are talking about?
We have a simple scenario, I am a PAYG employee, wife doesnt work, 2 small children. We intend to buy IPs on a long term buy and hold stratergy up to 20+ years.
He basically said a family trust with a $2 company as the trustee, my wife and I as directors of the company was our best bet. If we purchase a positively gear IP to purchase in the family trust, if we buy something that is negatively geared I should buy it in my name for negative gearing purposes.
He said a unit trust is no good as it generates a CGT event to transfer the units.
He thought new or near new properties we the best investment due to deprication.
He didn't know the current land tax threshold in NSW, nor whether we'd get the threhold with the family trust (this was a bit of a red flag for me as I already knew the answer before I asked the question).
When I asked about what tax deduction could the trust get that wouldnt be available when buying IPs in a personal name he was somewhat vauge.
I feel like I haven't been given the best adivce here and will seek out another accountant for a second opinion but just thought I'd see what others thought. How do you decide whether a professional you are speaking to is really giving good advice or is just trying to sound like they know what they are talking about?
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