I need some insightinto whether or not to change form been an investor subject to cgt rules or operate has a company and pay 30%corperate tax
I am off loading properties that have been recently constructed to increase my cash flow has my borrowings are maximised but to avoid the penalities of cgt i wonder what the implications would be of changing to operate as a trader under a company umbrella can i still claim interest loans and what other tax advantages are there .
The basis for this reasoning is i wish to build 9 future construtions but i need to sell in order to have loan facilites .
If you hold property more than 12 months then your get 50% discount on CGT. So if you are in the top tax bracket, then you could only pay a max of 25% CGT after the discount.
Why not use a trust next time. That way you might have a choice of paying tax yourself or distributing it to a company.
Terryw
Discover Home Loans
Parramatta
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