Hi all, interested in others input on situation before engaging professional ... Husband (ie-me) works full time. My wife is a 'stay at home mum' and has now considerable stock portfolio under her name and is keen on buying IP's with a view to renovating. Should we be looking at structuring under a trust to assist with tax benefits ? I see all the articles on asset protection however because we don't run or have plans to run a business not sure why we would be interested in this. I prefer to keep things simple but with substantial income now I am starting to scratch my head. Any constructive input much appreciated.
Impossible to advise! Renovating IPs with a view for what... buy and sell so to flip....then you run a business...tax implications and asset implications (can be sued or go bankrupt, etc...)? To keep and upgrade and to rent out...then you do not run a business, you just invest. Still tax implications and asset implications as above. Will you need finance or just use the funds from stocks? Trusts cannot make losses...well...unless offset other trusts. Hence will you too be in that structure for tax purposes or stay away? IMHO, you certainly need a profession advise it is impossible to advise on such limited information but more importantly on what you really wish to achieve!
First quantify the tax benefits Then consider the other legal issues, both pros and cons then seek legal advice.
And this is not a business structure, because there appears to be no business involved. Ownership structure.
