Does anyone own their own corporation?

Hi Princess, Yes I have used one of my companies Residential Wealth Pty Ltd, to purchase land, build houses/duplexes etc and on sell through agents.

My main company ( The Asset Group P/L ) and others are never used for this purpose.

Regards Phil … talk to your accountand and legal people, plus get good tax advise … good luck

If your purpose is to buy using “pre-tax dollars”, the company is still going to have had to pay tax on its profits unless it has losses that it is carrying forward. Might be better to look at maximising contribution from company to a self managed super fund and then using the funds in the SMSF subject to the various requirements for purchasing assets for a SMSF

You can have a corporate truste (so basically a company runs the trust) and their are so interesting things you can do (for example having Intellectual property held by the trust and your other business can pay a fee for the use of it (so it transfers $$$ to the trust). Also you can have your business (other comapny) as a beneficary so the trust can distribute profits to your company.

You probably will have to find a good accountant to help you out (one who is fimilar with RE and trusts – not that many accountants are (although they think they are!).

Rgds.
Lucifer_au

A couple of other things to consider:

If you’re running a business in your company, then buying passive investments in the same company is putting them at risk if your business goes broke owing money.

If the trust is a hybrid trust, or you create a new one, then you can buy the properties in the trust funded by the company by having it buy income units. That way you can discretionally distribute capital gains if you do ever sell, and income is going back to the company and taxed at the company rate.

GP