Forums / Property Investing / Help Needed! / Investing in Loan trust.

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  • Profile photo of GafeeyGafeey
    Member
    @gafeey
    Join Date: 2013
    Post Count: 4

    Hi, My wife and me are planning to buy a land by borrowing money. the land already have a building on it and renting out to a company.

    we both have income and we have three kids, 12,15 and 19 years old.

    I'm not sure if i should form a company or a trust for our kids. which way is better.we definitely want to minimise tax

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Gafeey

    Welcome aboard.

    You'll need to speak with a decent IP related accountant and solicitor in regards to your options for buying under different entities – they will present the pros/cons of each given your circumstances.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Josh AthertonJosh Atherton
    Member
    @josh-atherton
    Join Date: 2011
    Post Count: 269

    Hi Gafeey, 

    if you plan to pass the property on to your kids then a family trust may assist with this. If you are self employed or have other sources of income outside of PAYG then a trust could minimise your tax if you can put profits into there to soak up the losses and depreciation (if there is any).

    As Jamie said, a good accountant will help with this one for you

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Probably not a company.

    A trust structure is well worth considering, but make sure you get good legal advice as there are about 10 areas you need to consider – succession, stamp duty, trust law, land tax, convenacing act, coroporations act, SMSF laws etc 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 GafeeyGafeey
    Member
    @gafeey
    Join Date: 2013
    Post Count: 4

    Hi Jamie,

    Thanks buddy, I think it's good idea to talk to an accountant. too much to consider.

    Cheers

    Profile photo of GafeeyGafeey
    Member
    @gafeey
    Join Date: 2013
    Post Count: 4

    Hi Josh,

    Thanks, we both are working for a company and we do have other assets. just not really sure how trust could minimise the tax.

    Thanks again. great help

    Cheers

    Profile photo of GafeeyGafeey
    Member
    @gafeey
    Join Date: 2013
    Post Count: 4

    Hi Terry

    Thanks your reply. i agree, there are lots to consider. better find a good consultant.

    Cheers

     

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