Best financial structure for a single person developer

Viewing 9 posts - 1 through 9 (of 9 total)

hugoismydog
Participant
@hugoismydog
Join Date: 2011
Post Count: 17
March 27, 2013 - 12:21 pm
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.
wilko1
Participant
@wilko1
Join Date: 2010
Post Count: 510
March 27, 2013 - 1:05 pm
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?)
hugoismydog
Participant
@hugoismydog
Join Date: 2011
Post Count: 17
March 27, 2013 - 6:33 pm
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?
hugoismydog
Participant
@hugoismydog
Join Date: 2011
Post Count: 17
March 27, 2013 - 7:03 pm
Income current @80 k over
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 27, 2013 - 10:16 pm
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 Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
alfrescodining
Participant
@alfrescodining
Join Date: 2012
Post Count: 160
March 28, 2013 - 7:36 am
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?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 28, 2013 - 7:52 am
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 Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
TheFinanceShop
Participant
@thefinanceshop
Join Date: 2012
Post Count: 1,271
March 28, 2013 - 8:21 am
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
RPI
Participant
@rpi
Join Date: 2012
Post Count: 308
March 28, 2013 - 8:46 am
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