cgt

Viewing 6 posts - 1 through 6 (of 6 total)

trying
Member
@trying
Join Date: 2003
Post Count: 18
May 13, 2003 - 3:31 pm
if a company has assets held within a trustee and it sells the assets how much cgt does it pay ,or is there none ? does the company just pay 30% tax if the rest of the profit from the sale gets distributed to the benafieciers then they pay tax on it ,is that right
if the trustee has built up eqity in its assets can the company borrow more money to invest in another ip ?????? comfused
trying
Member
@trying
Join Date: 2003
Post Count: 18
May 14, 2003 - 4:32 am
thanks for your reply so if i wanted the trust to borrow money to invest than we would have to give a guarantee .and also what if the company has made no money ,does that matter ,you could just use the eqity in the assets already there ??????
scratchme
Member
@scratchme
Join Date: 2002
Post Count: 56
May 14, 2003 - 7:25 am
Hi Trying,
One thing to keep in mind is that if you have property (or land) in the trust you will have to pay land tax on the total value of your holdings. There is no threshold as for individuals.
This isn’t really a problem since the advantages far outway the disadvantages. (just something to be aware of.)
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trying
Member
@trying
Join Date: 2003
Post Count: 18
May 14, 2003 - 4:23 pm
i was told to open the trust i was so to speak giving a new threshold in land tax ,as i have already 4 ips in my and partners name ,so to create a new $260,000 i could put more ips into
until that reaches its limits ,[?]is that right
Red
Member
@red
Join Date: 2002
Post Count: 20
May 14, 2003 - 9:03 pm
Hi Trying,
One thing to keep in mind is that if you have property (or land) in the trust you will have to pay land tax on the total value of your holdings. There is no threshold as for individuals.
Are you sure about this, I was under the understanding that a trust was treated the same as an individual??
Steve McKnight
Keymaster
@stevemcknight
Join Date: 2001
Post Count: 1,763
May 15, 2003 - 1:31 am
Hi,
There are usually trust grouping provisions for land tax that means splitting entities offers little benefit.
Still, as the system is not self-assessed, it’s a little bit of ‘catch me if you can’. I’d only set up another entity if the asset protection made it necessary.
Michael – thanks for your excellent posts.
Bye,
Steve McKnight
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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Success comes from doing things differently