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

Viewing 6 posts - 1 through 6 (of 6 total)
  • 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

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Profits are just that, profits, and can be used for whatever you like.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of GiannaapomGiannaapom
    Participant
    @giannaapom
    Join Date: 2021
    Post Count: 0

    If company A is going to invest in company B, it is better to make a C company. Offshore companies, which used to guarantee high security to foreign investors’ assets and offer tax benefits, have changed their policies drastically to avoid being under international sanctions. Nevertheless, offshore companies have managed to adapt to stricter international rules without reducing the volume of foreign investment and business attractiveness. Considering the peculiarity of the American states in terms of the differences in local laws, we can distinguish seven states with the most attractive conditions for starting a business. Florida factoring companies for business are currently developing projects in Florida, but there are bright sides for Nevada, Alaska, South Dakota, Wyoming, Washington, and Texas. A robust corporate law structure can also be noted in Delaware. These are the best places to do business.

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

    Nevertheless, offshore companies have managed to adapt to stricter international rules without reducing the volume of f

    You don’t know what you are talking about!

    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/

Viewing 6 posts - 1 through 6 (of 6 total)

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