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If I setup a company and buy a property with that if I later sell the company with the property as an asset what are the tax and legal implications of doing that or is it better to do it in a property trust. This is of particular Interest where 3 investors start together but allows for other to pull out sell their shares to the other owners without being hit by stamp duty every time it happens.
If you sell shares in the property, you may still have to pay substantial stamp duty if the company is land rich. If in NSW, have a look at http://www.osr.nsw.gov.au
Other implications are, people worry about taking over a company as it could have debts/guarrantee/tax problems/other problems and they will inherit these.
If 3 investors are going in together, if may be better to use a unit trust with units held be each person’s discretionary trust. I beleive it is possible to transfer units without stamp duty. see http://www.chrisbatten.com.au
Terryw
Discover Home Loans
Mortgage Broker
[email protected]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
Hi,
Maybe you should consider another tax issue – CGT. You won’t receive the 50% exemption where the property is held in a company.
Christopher Raynal
Master Accountants Group Limited
PO Box 46018 Herne Bay
Auckland New Zealand
Ph +64 9 360 3259
Fax +64 9 360 2180
http://www.masteraccountants.co.nz
