- AmirParticipant@amir1Join Date: 2020Post Count: 0
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.
AmirTerrywParticipant@terrywJoin Date: 2001Post 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.