My CFA Karen Lori Burke is a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Have you had any clients who transferred their investment property under their name to the company to get the money out? So instead of paying the top up tax, you transfer the property to the company and only pay the 4.5% stamp duty. With the money you got out of the company, you fully offset you PPOR. Wouldn't this be very cost effective long term as long as your company doesn't sell the property which you just transferred over in anytime soon.
land tax is an important part of financial decision making when a firm is looking at projects to invest in/ How would a increase in land tax affect the cash flow of the firms project and the internal rate of return IRR. The time frame the firm will hold the project for. The use of weighted cost of capital ( wacc) and cash flow analysis will formulize if the firm will except or decline the project. The 15 year rule for business assets for capital gains tax. Disclaimer that the information written is NOT of finical advise. only for educational information.
@Davie Mach at 50minute mark, you could just, make a corporate beneficary, that way, you don't need to worry about having to buy in a company name all the time.
@DavieMach Emma has a graphic design business, and is not relevant for CGT, land tax, etc if you mixed it with property investment business and how to structure it. That is why sometimes you made a content without focus and make a confusion of your point.
Strategy 3, you should have added if sold? Who will come out in front in the end due to 50% capital gains discount, wouldn’t trust/individual will come out in front in the end when you sell?eg both sell for $2m for $1m profit. Individual/trust is taxed on $500k, the company is taxed on 1m?
I did add in if they sell. But my explanation is that you can’t just look as if they sold at $2m because my argument is that you start with more money in a company compared to a trust or individual. So you got to take in consideration the first initial investment. The first initial investment will have a larger starting capital as the tax to get that investment is at 25% rather than 45%
@@DavieMach Got ya. I was more referring to, if same amount and rest is in offset account, which will win in the end. Eg $1m, one has $750k and the other has $1m and both bought something for $750k and left $250k in offset account for the company
@ hmm that’s interesting. Depends on the interest rate but I would assume at a 6% saving with extra capital I still believe this one will win on company. Especially in the long run
Yeah I made the mistake of few things.. First putting money into my offset account and then buying properties with it.. Now I need to return the money or enter a loan agreement or take dividend. He said with the remaining money that I have, say $3m, use that to invest in properties and have 20% deposit and offset it so money isn't being wasted since I can't put it in my personal offset account. This way, the money can easily be accessed whenever I need it and I can distribute in the future to my family when our income is much lower etc. Basically building generation wealth and pass down.
Great content. Some gems of information in there. Thank you.
Glad it was helpful!
Great comparison!! Kudos for sharing this.
Thank you so much 🙂
Definitely want Davie to review our situation before we make any move we could regret. Great video
correct! get an accountant to review the situation before making any moves!
What's the most common winning investment strategy in the financial market?
My CFA Karen Lori Burke is a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Astound. I'm so excited seeing Karen Lori Burke mentioned here. I'm also a proud beneficiary of her platform
Her platform is wonderful, and her services are exceptional.
I'm new at this , please how can I reach her?
She's on face book, look up her name 👇
Have you had any clients who transferred their investment property under their name to the company to get the money out? So instead of paying the top up tax, you transfer the property to the company and only pay the 4.5% stamp duty. With the money you got out of the company, you fully offset you PPOR. Wouldn't this be very cost effective long term as long as your company doesn't sell the property which you just transferred over in anytime soon.
land tax is an important part of financial decision making when a firm is looking at projects to invest in/ How would a increase in land tax affect the cash flow of the firms project and the internal rate of return IRR. The time frame the firm will hold the project for. The use of weighted cost of capital ( wacc) and cash flow analysis will formulize if the firm will except or decline the project. The 15 year rule for business assets for capital gains tax. Disclaimer that the information written is NOT of finical advise. only for educational information.
agree land tax needs to be considered. Also the 15 year rule only works for commercial property that is considered real business assets.
@Davie Mach at 50minute mark, you could just, make a corporate beneficary, that way, you don't need to worry about having to buy in a company name all the time.
if you lend the money back from the corporate beneficiary to the trust you will have division 7a issues which can result to being double taxed.
Is there a version of this video for non property focused investors?
You can check out the bucket company deep dive video
Great video Davie thanks for sharing. Curious - what sort of accountant is your wife? Corporate / Big 4 or?
same as me but smarter haha
@DavieMach haha that just sounds like something she made you write 😂
@@itsdannyftw shhh 🤫 she could be watching
Finally, there is no emma graphic business with her spouse within the structure
whats wrong with emma?
@DavieMach Emma has a graphic design business, and is not relevant for CGT, land tax, etc if you mixed it with property investment business and how to structure it. That is why sometimes you made a content without focus and make a confusion of your point.
@@AninePlus oh I’m a small business accountant hence the focus on small business and taxes but noted!
Strategy 3, you should have added if sold? Who will come out in front in the end due to 50% capital gains discount, wouldn’t trust/individual will come out in front in the end when you sell?eg both sell for $2m for $1m profit. Individual/trust is taxed on $500k, the company is taxed on 1m?
I did add in if they sell. But my explanation is that you can’t just look as if they sold at $2m because my argument is that you start with more money in a company compared to a trust or individual. So you got to take in consideration the first initial investment. The first initial investment will have a larger starting capital as the tax to get that investment is at 25% rather than 45%
@@DavieMach Got ya. I was more referring to, if same amount and rest is in offset account, which will win in the end. Eg $1m, one has $750k and the other has $1m and both bought something for $750k and left $250k in offset account for the company
@ hmm that’s interesting. Depends on the interest rate but I would assume at a 6% saving with extra capital I still believe this one will win on company. Especially in the long run
Yeah I made the mistake of few things.. First putting money into my offset account and then buying properties with it.. Now I need to return the money or enter a loan agreement or take dividend. He said with the remaining money that I have, say $3m, use that to invest in properties and have 20% deposit and offset it so money isn't being wasted since I can't put it in my personal offset account. This way, the money can easily be accessed whenever I need it and I can distribute in the future to my family when our income is much lower etc. Basically building generation wealth and pass down.