Wayne
The company must pay tax on its profit, so taking the money out won’t cost you anymore in tax unless you are on a higher bracket than 30% (franked dividends).

I would be using a trust to invest in property myself, rather than the company. And using a trust, you may not have to pay any CGT, however if you do, you have more flexibility in reducing the amount.

Terryw
Discover Home Loans
North Sydney
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Wezwas

This sounds like a reasonable figure. using a mixture of business, shares and property a 10% return is not very high.

eg. Imagine if you used this money as deposits for wraps. $20,000 deposits on 15 properties returning $3000 pa each after costs = $45,000 plus all the capital gains on cashout.

Terryw
Discover Home Loans
North Sydney
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There is a really good book which I bought years ago. But I have jsut lent it to a client and forget the title. It was something like
“How to pay your mortgage off years sooner..”
the author was from WA from memory.

Terryw
Discover Home Loans
North Sydney
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fjficm

I beleive that is correct. You, or the trustee, can distribute as you see fit – any percentage you like. So if you have some bennies give them as much as they can handle, then the rest could be diverted into a company.

Supa Freak. You technically are giving them the money, but they may give it back to you. Usually it is just a paper entry, and you may give them a bit for their troubles. bear in they they have to include this money in their tax return and may have to pay tax on it.

btw, I am not an accountant, so this may be wrong.

Terryw
Discover Home Loans
North Sydney
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I have heard Roy say that too. He also said the legal fees involved would be an amount similar to the stamp duty anyway.

Cnetrelink make it hard on pensioners. If your mum rents out her current home, the rent may result in her losing pension or having it reduced. Why don’t you ring them up and explain the situation and see what they suggest. They have financial planners/advisors there that can help you. War pensions may be different too.

Terryw
Discover Home Loans
North Sydney
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I wouldn’t be so direct as Rob, but…

Terryw
Discover Home Loans
North Sydney
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I wonder how cnetrelink would look at a pensioner wrapping a proeprty. The ATO considers the sale to occur on exchange of contracts – even if paying in installments. You could lease option it off him also, but the rent would be over his threshold as well. a tough one.

Terryw
Discover Home Loans
North Sydney
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From a wrap pack (steve’s or rick’s) or from a solicitor. or maybe from someone who has done one.

Try Solicitor Lewis O’Brien in Vic.

Terryw
Discover Home Loans
North Sydney
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One idea is to:
Just import something from the country you want to go to. Something that will be easy to sell. eg Men’s black socks.

Terryw
Discover Home Loans
North Sydney
[email protected]