All Topics / Commercial Property / Planning to buy a a new building

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  • Profile photo of yyroundyyround
    Member
    @yyround
    Join Date: 2011
    Post Count: 2

    I am a accountant in the stair manufacture business, my boss told me that he is planning to buy a new building to start up a new business in NSW, roughly half million, and he asked me what s the best way to approach this in tax-wise, caseflow-wise. He wants to know all the reprecussions it would bring to his business, i dont know where to look for answer, can any one help me out here, i guess he just want to at least know something before he comes to his external accountant.
    I know there is a lot missing in my post, as a matter of fact, even my boss dosent have answers to that new business, all he knows is he want to start a business solely focus on making stair components in the same area (NSW), and in terms of company structure, or any other money wise issues, he is open to advice and will choose the best advice to carry out the plan.
    Cheers!1

    Profile photo of luke86luke86
    Participant
    @luke86
    Join Date: 2010
    Post Count: 470

    I would suggest that it would be best to own the property through a seperate company/trust. That way the property has some level of protection should the stair making company go belly up and creditors come chasing him.

    Cheers,
    Luke

    Profile photo of yyroundyyround
    Member
    @yyround
    Join Date: 2011
    Post Count: 2

    Thank you for your advice, Luke, our company now is working through a trust, and i think it is a good idea if we establish another trust for this new business, and make the current company a beneficiary of the new trust just to share some loss at the first few years.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    yyround, $0.5M doesn't buy a great deal of anything in most parts of Sydney – what sort of space (industrial, office or retail)?

    Which part of NSW or are you looking at the major centres (Sydney, Penrith, Parramatta, Hurstville, Chatswood, North Sydney, Wollongong, Newcastle, Central Coast)?

    Profile photo of Ashley CAshley C
    Participant
    @ashley-c
    Join Date: 2011
    Post Count: 36

    Hi,

    If the property is used in a business it may qualify for the small business Capital Gains Tax exemptions.

    It's a good idea to put the property in a seperate trust, however, I recommend due diligence to confirm that can qualify for the exemption (if applicable).

    Profile photo of Jacob MartinJacob Martin
    Member
    @jacob-martin
    Join Date: 2012
    Post Count: 13

    Know the history of the building that you are planning to buy so that there will be no more hassles later on…

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Yes, many things to consider:

    1. Stamp duty now and later

    2. tax – income, CGT, small business concessions

    3. land tax

    4. assset protection

    5. flexibility

    6. control

    7. finance

    8. death/incapacity

    etc

     

    in adddtion to trust structures consider a SMSF too.

     

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of kane9539kane9539
    Participant
    @kane9539
    Join Date: 2014
    Post Count: 9

    You have to Know the history of the building that you are planning to buy so that there will be no more hassles later on…

    Profile photo of Rhys AdamsRhys Adams
    Participant
    @rhysadams
    Join Date: 2014
    Post Count: 14

    As suggested by Terry, we have seen a lot of self employed business people using their SMSF as an investment vehicle to buy premises from which to operate their business.

    The ability to do so is obviously dependent on the availability of capital yor boss holds within super but given the relatively low price he is looking to pay there may be capacity for this investment while maintaining sufficient diversification.

    This strategy is definitely one that requires proper advice and structuring upfront!

    Rhys Adams
    http://www.redcommercial.com.au/
    Email Me | Phone Me

    Commercial Property and Construction Finance Specialist

    Profile photo of Adrian CahillAdrian Cahill
    Participant
    @adriannqld
    Join Date: 2003
    Post Count: 128

    Good stuff! It’s really motivating to hear this. Love reading all the comments,thanks for sharing.

    Adrian Cahill | AdrianCahill.com Personal Development Expert
    http://adriancahill.com/from-investor-to-coach/
    Email Me | Phone Me

    Here since 2002, however things have evolved over the years.

Viewing 10 posts - 1 through 10 (of 10 total)

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