All Topics / Legal & Accounting / Tax Implications for +CF

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  • Profile photo of RaYmORaYmO
    Member
    @raymo
    Join Date: 2005
    Post Count: 2

    Hi,

    Ive only just started reading Steve’s first book and only a couple of chapter into it…

    One thing that is puzzling me right now is how I can escape the evil clenches of the taxman (the combination of my current salary with the addition of the +CF will place me in the highest taxing bracket)

    I was just wondering if anyone out there have any ideas on tax minimisation strategies they have implemented on their +CF streams that would essentially put more in our pocket at the end of the day.

    Thanks for any advice in advance.

    Ray.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Discretionary trusts are the way to go.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Ray,

    I don’t see a problem – so what if you are being taxed more – doesn’t that also mean you are earning more?

    Having said that I prefer to buy growth focussed properties in good, proven areas and then use any depreciation benefits to improve the cashflow and enables me to hold quality properties in quality locations for their long term growth benefits.

    Derek
    [email protected]

    Property Investment Support Available.

    Profile photo of FFCommFFComm
    Member
    @ffcomm
    Join Date: 2004
    Post Count: 627

    If you have the right coporate structure (i.e. using a trust) you can reduce paying almost all taxes legally (except stamp duties it seems!).

    Rgds.
    Lucifer_au

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Lucifer

    I think you can even avoid Stamp duty in some situations if you have a good structure.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Robbie BRobbie B
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    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Now that knowledge would be worth a fortune! I have never heard of it happening except with inter-family transfers in specific situtions and a private ruling.

    _____________________________________________

    The poster formally known as The Mortgage Adviser

    When I grow up, I want to be a Storm Trooper!

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    The trouble is the legal fees are ususally more than you save!

    But if you use a unit trust to own property, under certain circumstances the units can be transfered and stamp duty avoided.

    Terryw
    Discover Home Loans
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    North Sydney
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    What circumstances would they be?

    I was under the impression that the unit value will incur stamp duty.

    _____________________________________________

    The poster formally known as The Mortgage Adviser

    When I grow up, I want to be a Storm Trooper!

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I don’t know for sure, it depends on which state you are in. My NSW solicitor told me their is not stamp duty on the transfer of units in a unit trust, Dale also mentions it in his book, but i think it is a little more complex than just transfering units.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    More information would certainly help. Will you get this?

    _____________________________________________

    The poster formally known as The Mortgage Adviser

    When I grow up, I want to be a Storm Trooper!

    Profile photo of showmethemoneyshowmethemoney
    Participant
    @showmethemoney-2
    Join Date: 2003
    Post Count: 103

    Terry

    If both partners work and are in the top tax bracket, how does a discretionary family trust improve the tax position?
    We are in that position. We have a Trust but I really set that up to provide another entity in which to hold property because of Land Tax. Our income tax situation has not changed.

    Regards

    Clive

    Profile photo of RaYmORaYmO
    Member
    @raymo
    Join Date: 2005
    Post Count: 2

    Hi Everyone,

    Thanks for providing me with some ideas on what options are available out there for tax minimisation…

    After getting further into Steves book, I can see his point of a positive is always better than a negative! All starting to make sense now…

    Cheers,

    Ray.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Clive

    Worse case scenario, if you don’t have any ‘poor’ relatives is to set up a company and distribute to that. Companies pay 30% tax. Then money will be stuck in the company, but it could then be loaned or invested etc. (make sure you do htis properly)

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    Click below to email me

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 13 posts - 1 through 13 (of 13 total)

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