Hi everyone
I bought a property for $200 000 nine weeks ago and is now on the market for $330 000 it is in a company trust name out of the profit say $130 000 will i pay 30% tax and if so if i sell the property after 1/7/07 can i delay payment till next financal year.Thanks Rob
Rob
Yes as long as the date on the sale contract is after July 1 2007 then the profit will be assessed in the Tax Year 2007/2008.
Richard Taylor | Australia's leading private lender
Hi Richard
And will i be taxed at 30% being a company trust
Thanks Rob
You are not operating as a Company Trust but the Company maybe the Corporate Trustee.
Tax will be paid by the Company at a rate of 30% however when distributed will come with franking credits so the beneficiares may pay more of less dependant on their own marginal Tax rates.
Richard Taylor | Australia's leading private lender
Trusts do not pay tax, it is the recipient who pays the tax. Therefore the rate of tax will vary depending on the beneificiary's income in that financial year. If you distribute to a company, the rate is fixed at 30%, if an individual, then the rate will vary from nil to 48%
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
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