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Structuring now and into the future.....

Discussion in 'Accounting & Tax' started by miximitosis, 12th Oct, 2015.

  1. miximitosis

    miximitosis Well-Known Member

    24th Jun, 2015
    Hey guys,

    Just looking for some tips to legally minimise tax (income tax, land tax etc) and protect our personal/investment assets in QLD.

    How would you guys approach the following?.....

    -My partner is self employed already as a sole trader....
    -I am about to become self employed in an industry which will require our assets to be protected
    -we currently don't have kids but will in the next few years.

    We plan to acquire a substantial share/property portfolio with the aim to be financially free in approx 20 years.

    I expect my income to be far lower than my partner the first year or two. Would a single family trust with both our business incomes flowing into it with a company trustee provide the best asset protection/tax effectiveness?

    Also, going forward how should we buy shares/IP's? A separate trust straight away or maximise mine and the partners personal land tax threshold and then start buying in a trust?

    Any advice would be much appreciated... As you can tell I'm quite new to this

  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    18th Jun, 2015
    I cannot answer 'should I' type questions.

    but the only way to have flexibility like you want is to use a discretionary trust. If set up properly it will provide good asset protection too.

    Look at the downsides and look at the alternatives too.
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    18th Jun, 2015
    Loads of factors may affect this:
    - You may have a future high income
    - Wife may / may not have kids and income may be affected
    - Where may all these IPs be ?? land tax issues ?

    Blending IPs and business income through a trust / trusts may even by a Part IVA tax scheme concern if one of the target benefits of that structure is to offset passive rental income losses v's positive business income + especially if any is personal services income etc.

    Ditto share trading may or may not be "business" income / passive / cap gains issue.