Company vs. Entity tax deductions

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Most excellent
Member
@most-excellent
Join Date: 2003
Post Count: 100
August 13, 2003 - 12:44 am
What are the tax implications should I choose to begin a company and trade under it’s trust fund.
Have I many more tax deductions that I can claim?
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
August 13, 2003 - 1:05 am
There are generally more deductions available to a company or a business than an individual.
For some unusual ones (eg alcohol) see
http://www.gatherumgoss.com/business.htm
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
trisha
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@trisha
Join Date: 2003
Post Count: 15
August 13, 2003 - 1:38 pm
Terryw
Had a look at th sight, theres some interesting deductions to keep in mind.
Can you clarify the advantage of setting up an IP in a trust
Trish
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
August 14, 2003 - 3:23 am
Using a trust allows you to distribute any income at your (or the trustee) discretion to any beneficiary of the trust. If you buy in your name only, you are stuck with all the income. Beneficiaries are usually listed vaguely such as any current, future or past spouse, any children or future children, step children and grandchildren. So you may have potential beneficiaries that aren’t even born yet! You never know how your circumstances will change.
eg. Say you were working and your spouse wasn’t. If you had $6000 in positive rental income, you could simply distribute all of this to your spouse and no tax would be payable.
Another major benefit is asset protection. Holding assets in Trust means they are not really yours, so if you are sued, those assets are protected (to a certain degree).
Terryw
[email protected]
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
trisha
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@trisha
Join Date: 2003
Post Count: 15
August 14, 2003 - 9:30 am
Terryw
Thanks for your answer. They are different to Tennant in common contracts cause you have to stipulate the breakup percentage, is that right whereas trust guess you can see how the year has gone and distribute any money according to you incomes.
Are trusts espensive to set up
Ta for your help
Trish