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.wilko1Participant@wilko1Join Date: 2010Post 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?)
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?
Income current @80 k overTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
You need to consider the following (non exhaustive) list
asset protection for negligence and contract
asset protection for incapacity and death
social security issues
etcalfrescodiningParticipant@alfrescodiningJoin Date: 2012Post Count: 160
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?TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213alfrescodining 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.TheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post 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.
ShahinRPIParticipant@rpiJoin Date: 2012Post Count: 308
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.