Wct01Participant@gavin1111Join Date: 2015Post Count: 19
I am looking to set up a structure for asset protection. I have spoken to an Accountant and was told that I could either have a structure that gave (1) High Asset Protection but no negative gearing (for example, a Corporate Trustee & Discretionary Trust) (2) If I wanted to be able to have Negative Gearing, then it would have lower asset protection. Steve McNight’s books state that our property investment strategies needs to be able to change with the prevailing market conditions. And I’m not comfortable in having to choose an asset protection structure that would cater for one particular type of investment strategy. Based on our meeting, I got the impression that I had to choose one strategy – (1) Long Term Buy & Hold (which allows negative gearing) or (2) Short term Cash or Cashflow Strategies (eg: Flipping or Trading properties) but would not allow negative gearing. I’m not a fan of negative gearing but I would like to be able to claim some expenses as a tax deduction. I am hoping someone can provide some comments on what to do. I am happy to sign up with another Accountant if they can do better. Thanks.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
Asset protection is legal advice. See a lawyer. Accountants dont know about various aspects such as the bankruptcy act conveyancing act and other legislation as well as the laws of equity.
You can have good asset protection and be able to claim negative gearing benefits. But it will all depwnd on your situation and what you are trying to protect yourself from.