10 Reasons Your Small Business Will Sky Rocket With A Bookkeeper
This can be one of the biggest investments that you make in your life and you want to have peace of mind that you are purchasing it in the most effective way to your personal circumstances…
Structures You Can Purchase an Investment Property In
Personal Names – Most Common Structure
- Can be purchased as Tenants in Common or Joint Tenancy
- Tax Advantages if the property is negatively geared
- Splitting of income can assist if one is earning more or less than the other
- Discounts available on Capital Gains [after held more than 12 months]
Trust
- There are costs involved in setting up a trust structure and ongoing accounting work to complete income tax returns
- Trust provides asset protection against the purchase of property and can particularly assist with higher earners who may become involved in a professional indemnity, public risk or product liability claims
- Distributions or income can be offset to beneficiaries to the trustee’s discretion
- On sale, CGT exemptions are still available
Company
- This type of structure is becoming a less common structure to use – can be costly to set up and maintain
- Profits of the company will need to be distributed by either wages, dividends or loans to directors
- Any negatively geared property, the losses will remain in the company
- The company will pay a 30% flat tax rate on any profits retained by the company in the financial year
Contact us today to see which structure is best for your own personal requirements.
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