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Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of hugoismydoghugoismydog
    Participant
    @hugoismydog
    Join Date: 2011
    Post Count: 17

    Hi all,

    am single n wld like to go into buying land or property, develop it into units and sell them off. Wat structure is best for tis model to minimise tax payment? I've been reading abt trust but nt sure how it works. 

    Pls advice if any. 

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510

    What is your current income?

    do you have any family members over 18 earning low wages ?

    if you accept that the worse case is the company tax rate is only 30 %. ( is it reducing to 29% for small/medium business this year?) 

    Profile photo of hugoismydoghugoismydog
    Participant
    @hugoismydog
    Join Date: 2011
    Post Count: 17

    No family at all under 18. I'm nt married w no children and nt planning to have. 

    Are you suggesting tat setting up a small med business is best for the future? 

    Profile photo of hugoismydoghugoismydog
    Participant
    @hugoismydog
    Join Date: 2011
    Post Count: 17

    Income current @80 k over

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    You need to consider the following (non exhaustive) list

    asset protection for negligence and contract

    asset protection for incapacity and death

    Succession plan

    land tax

    stamp duty

    income/CGT tax

    GST

    Loan structures

    Serviceability

    personal guarantees

    social security issues

    future plansfamily

    situation

    etc

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

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

    Profile photo of alfrescodiningalfrescodining
    Participant
    @alfrescodining
    Join Date: 2012
    Post Count: 161

    Terry, where does negligence come into it?  Isn't it ok to rely on the fact that the builder is the one who has the insurance, not the developer?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173
    alfrescodining wrote:
    Terry, where does negligence come into it?  Isn't it ok to rely on the fact that the builder is the one who has the insurance, not the developer?

    I don’t know if you could rely on that. I was thinking more along the lines of the individual being sued for something outside the development. If not structured well creditors could get at the development.

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

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

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Ahh yes tax advice with only 2 lines of information – I would suggest speaking to an Accountant or better still Terry who has responded about the appropriate structure. There are a lot of things as per the above post to consider.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of RPIRPI
    Participant
    @rpi
    Join Date: 2012
    Post Count: 308

    Hi
    Even if you own in your own name you should consider a project management entity that contracts with the entity that owns the land to do the Development.
    It then contracts with builders, trades etc.

    RPI | Certus Legal Group / PRO Town Planners
    http://www.certuslegal.com.au
    Email Me | Phone Me

    Property Lawyer & Town Planner

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