As a non resident you would be paying much higher tax than residents. It may work out better for you to take your money offshore where it could be earning higher returns without the tax. This in turn would increase your deductions for the residential property here

Darrly,

I agree.

I have a client now who is going to be bankrupted soon. He did his own asset protection planning and thought he was smart buying a commercial premises in a company rather than his own name, Guess who owns the shares!

Consider land tax as well. This is likely to be a large expense as trusts do not get any tax free threshold so 1.6% of the land value for all land owned by trust – each year too!.

Being a director has no bearing on tax. Trading company should not hold assets or be trustee. It could be a beneficiary though, but this may mean it starts to hold assets – cash distributed. It all depends on the risk factor. weigh up risk v costs.

Consider succession planning too. Who takes over if you die or become incapacitated.

Also possibly consider setting things up so that it is flexible and can be easily changed or adapted in the future – such as using a unit trust on top. There are many advantages.

Sounds like a reasonable fee. Nathan is very sought after these days.

It could be possible.

Reg 13.22C SIS regs

Hi wilko

I was thinking along the lines of esch guarsntor beingnliable for the whole debt they have guaranteed. So if a b and c guarantee a $1mil loan by a trustee then if a went to borrow for something in his own name then he would be assessed as having $1mil in debt.

If you or a related entity is declaring profits on capital account it is likely to be treated one off. Even when using a discretionary trust the income would flow thru as a capital gain usually.

If you are trading or treating the sales on the revenue account then you are unlikely to be treated as a residential customer and more likely to be a commercial loan client

I agree with richard and alistair above. Must have enough income in the trust and remaining directors to service and thrn get the loan redone. Income of trust can be taken into account. But if it is one off capital gains from the sale of property then this is unlikely to be considered income for loan servicing.

prob straigt income tax. gst on the sale of new land for first 5 years. may be able to apply margin scheme.

and they probably have kept their loans crossed too:-)