My daughter and I want to buy investment properties however to protect my current assets I have been advised to set uo a company. In my situation is it better to Have a company or trust
Different for different situations and also different states have different land tax considerations.
I am a big believer in discretionary trusts with corporate trustees for investment properties in QLD .
BUT you can't negatively gear wages and salary against losses in the trust.
Some basics
50% CGT discount for trusts not companies
Discretionary trust allows for distribution to everyone your related to, and companies and trusts and and and.
Companies to shareholders only
Unit trust allows for distribution to unit holders only
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
A Russell wrote:My daughter and I want to buy investment properties however to protect my current assets I have been advised to set uo a company. In my situation is it better to Have a company or trustBest to get proper legal advice on this. Companies or trusts may not protect your current assets to any great extent.
There are lots of other issues to consider also such as land tax, 50% CGT discount (not available for companies), loan structuring – for both asset protection, taxation and serviceability. etc
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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