Hi All,
Steve and Dave speak of correct entity structuring in “wraps secrets revealed”, and indicate that it is fine to start out purchasing property in your own name and if/when the time is right to set up the correct entity structure for your own situation. However one issue that seems to have been omitted is, what do you do with the properties bought in your name once a company and/or trust is in place.??!!
Can you transfer ownership of the existing property/ies to your trust??? If so, is it a costly or tedious experience?? How can it be done?? Can you move a property from an individual, to a company and then into a trust???
I’d love your input on this guys(and girls [
] ), as i would like to set up as efficiently and effectively as possible from day one!!Would you be as kind as to reply to this post as well please Steve!?!
Im sure this is something that has crossed the minds of many of us!!I look forward to reading your thoughts…
Kind Regards,
Michael…Michael
If you want to transfer after you have already settled, then it will be just like selling the property from yourself to your company. So you will have to pay stamp duty and possibly capital gains tax!
Maybe you could do your first one in your name, see how it goes, and if you decide to continue, then set up your company for your 2nd+ house.
Terry
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Michael
I concur with Terry, with the addition of a further idea:
“The middle ground”
You could set up the ‘discressionary trust’ portion of your structure with you &/or business partner as trustees. (so no company yet)If all goes well you later set up company and you personally retire as trustee while company becomes trustee.
As the ownership has not changed (the trust owned the property all along, just the trustees have changed) there is no stamp duty to pay.
This is how we did our first 4 houses while we got a feel for the business. [8D]
cheers
the Bruce
] ), as i would like to set up as efficiently and effectively as possible from day one!!
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