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Using company to buy properties and transfer share later??? Possible??extradry [4 Posts] Hi all, first of all thanks to everyone who has contributed to this forum. Have been spending some time reading on this great site!! I'm new to this site and also to the property investment game. (Hoping to settle on a property soon!!) I do have a query which i need some clarification. I'm not sure whether its do-able but anyways, need some insights and feedbacks from you property/ accountant experts. I have a sibling overseas who is also interested in getting into property investing here. Problem is he(not PR) will need to go through FIRB and also only allowed to buy new properties. So my question, is it possible for me to setup a company and use the company to buy properties, so that when he comes over (in future) i can then transfer part of the share over to him? Rather than buying in my name and then transfering to his name which will incur stamp duty etc... later. Is this at all legal or even possible? Is there a better way to deal with this? What implications will there be on me in doing this (eg. taxation etc..)? Thanks in advance!! Regards, crj [276 Posts] When you transfer the shares to him there will be a CGT event. Depending on what state you are in the shares might attract duty at the value of the real property. Companies don't get the 50% CGT discount if assets are held for more than 12 months Is it possible to set up a trust where your sibling is one of the ebneficiaries and then transfer control of the trust to the sibling at a later time   Terryw [6279 Posts]  crj is on the ball I think. A trust with a corporate trustee maybe the way to go as the ownership should be able to stay with the company and you just back out giving control to the sibling. Terryw extradry [4 Posts] Thnaks for the replies guys. Where would be the best place for me to find out more on trusts? - Is it possible for me to put my sibling as a beneficiary eventhough he is not an Australian PR/citizen? Cheers!! Terryw [6279 Posts] usually all siblings will be beneficiaries automatically without being named - actually every relative, alive or yet to be born, will be included. But there will be tax consequences if you distribute to a non-resident (for tax purposes). They may have to pay more tax. But once they move over here they could start to receive distributions then as per normal. Read a few documents on trusts here http://www.moorestraining.com.au/ and Terryw |
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