Strategy - Seeking PC help

Discussion in 'Investment Strategy' started by Tofubiscuit, 2nd Nov, 2018.

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  1. kierank

    kierank Well-Known Member

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    PC is a great forum but I only use it for people’s opinions, not advice.

    I would rather pay for advice.

    That’s my advice, sorry opinion :eek:.
     
    kierank, 2nd Nov, 2018
    #21
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  2. Tofubiscuit

    Tofubiscuit Well-Known Member

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    Thinking through next steps today.

    As I continue down the property investment path. Exit cost of CGT and stamp duty is prohibitive, I'll be a buy and hold investor.

    That would seem to mean I be forever chasing negative gearing to lower the tax I pay on incremental rental incomes?
     
    Tofubiscuit, 5th Nov, 2018
    #22
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    What is negative becomes positive so plan ahead for this too.
     
    Terry_w, 5th Nov, 2018
    #23
  4. Tofubiscuit

    Tofubiscuit Well-Known Member

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    Well let's say middle career worker receives $150K PAYG income and built a net rental income of $30K. Any further PAYG increases or passive income from rentals will be taxed at 49.50%.

    What are some strategy people use? I looked up use of family trust but NSW land tax is expensive in a trust.

    Do some investors end up on a cycle of constantly looking for the next negative gear property?

    Rolf mentioned about investment in business, that would be tax effective... but I don't think I'm quite there yet with my risk appetite.
     
    Tofubiscuit, 6th Nov, 2018
    #24
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    There are worse things that paying taxes.

    I have clients with portfolio values of millions, that live pretty well, but due to depreciation and various other dedns dont pay that much income tax.

    An efficient tax structure, often via a mix of disretionary trust and bucket companies may help to reduce #

    Please see specific tax advice, what generically works for one person isnt going to work for another

    BTW, business is meant to make money, and pay lots more tax :)..... its ok to pay the legal minimums.

    ta
    rolf
     
    Rolf Latham, 6th Nov, 2018
    #25
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    A trust in NSW is only more expensive in terms of land tax if both spouses haven't used the threshold.
     
    Terry_w, 6th Nov, 2018
    #26
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  7. Tofubiscuit

    Tofubiscuit Well-Known Member

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    Thanks Rolf, agree on paying tax. I just want to think through and plan for the future so investments and passive income built are not being "lazy" and inefficiently taxed.

    Kerry Packer did make a good point about the government not putting taxpayer money to good use!
     
    Tofubiscuit, 6th Nov, 2018
    #27
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Fully agree

    a dollar left in the community, will do more than a dollar given to the Golden Goose.

    many prospective clients and well intentioned peops often fall off the trail here .

    We have the intention and goal of investing for their future, but our path takes us down a completely different rabbit hole......... and some times years later we ....... wonder, how did I get here :)

    Dont get me wrong, structure is important, research is important.

    most people already have waaaaaaaaaaay to much information, and cant overcome the inertia point of needing to get "IT" perfect.


    ta

    rolf
     
    Rolf Latham, 6th Nov, 2018
    #28
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