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 taxJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
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.
JamieJosh AthertonMember@josh-athertonJoin Date: 2011Post Count: 269
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 youTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
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.
Thanks buddy, I think it's good idea to talk to an accountant. too much to consider.
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