All Topics / Help Needed! / How to use company business income to buy property in another company/Trust?

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  • Profile photo of AmirAmir
    Participant
    @amir1
    Join Date: 2020
    Post Count: 0

    Hi all,

    This might be a very basic question but would like to ask this question here with the hope of getting some great answers here.

    I am setting up a business (company A) and would like to use most of its income to buy property in company/Trust B. This is mainly to keep business and investment separate and have better asset protection and also have better tax outcome. So could you please help me to understand of my options for using company A income to buy property in company/trust B.

     

    Regards

    Amir

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I am not sure what you mean exactly but Company A could lend money to Company B which could buy the property. Company B could buy the property without a loan using Company A’s money – thereby creating a resulting trust. Company A could pay income out to its shareholders who could lend to Company B to buy property.

     

    There are lots of legal and taxation issues to consider.

     

    And this would not prevent Company A from being taxed on its income either – which seems to be a common misunderstanding.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of AmirAmir
    Participant
    @amir1
    Join Date: 2020
    Post Count: 0

    Hi Terry,

    Thank you for your response.

    Reagrds

    Amir

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