Terry,
Thankyou for the response, and if i have learned correctly, my goal is to get my property/s to a point where they are +CF and negatively geared, yes?
your response to haiqu regarding asset protection and income distrobution has really enlightened me!
with the trust situation, doea this mean i need to decide what i want to do regarding offsetting "paper" losses against my income? if i have my i.p in a trust i can not offset the losses correct? so its a matter of deciding wether i want asset protection, and the ability to distribute any income (which will come in handy if wifey has time off work to have children) – or the ability to have paper losses and positive cash?
what would you recommend to someone in the early stages ie: 1 or 2 properties who wants to avoid a glass ceiling on how much they can borrow? obviously my situation id like to most be in would be readily available cashflow per month, rather than income coming readily available at tax time. i wonder could you please elaborate on what "losses will be carried forward to the next year" means?
i hope my question isnt one you answer all to often and grow tiresome of replying to !
thank you for your input thus far,
Ben
Trusts won't help borrowing capacity, so whether in your own name or a trust borrowing will be the same.
They may cost a bit more initially, but hopefully will save you tax in the long run – assuming you will make a profit. You have to weigh up the advantages and disadvantages.
Carrying forward losses means bring the loss forward to the next year.
eg. say you end up with a $1000 negative income. The next year you have a $10,000 income, but you can use the loss from the prior year to reduce your income which would then become $1000. You can do this with trusts, companies or individuals.
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
Thats excellent mate,
thankyou for the info regarding carrying forward losses its very helpful and means i can get with the conversation a bit more on some of the other threads!
Thank you again Terry
Ben
Thanks Terryw and all contributors to this thread.
I`ve found it very educational
Goodluck Ben and Mina sounds like your on the right track.
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