High-Level Structures For Tax Efficient Property Development

High-Level Structures For Tax Efficient Property Development

 

Here's some high-level things we need to think about when we're approaching the structure of carrying out a development. 

Income Tax

How does that play out? If you buy it in a personal name, then you're looking at upwards of 47% tax, depending on your marginal tax rates. 

 

Structuring Through A Company

Depending on the setup, you might pay 26% tax if you're classed as a business, or 30% tax if it's a bucket company or it's seen as investment income. 

 

Structuring Through A Trust

At the end of the day, you actually choose who gets the profit of the development. If it’s a profitable development, Income tax could be one of your biggest taxes. So getting that right is critical and that relies heavily on your structure.


If you want to learn more, watch “Structuring property development in trusts, companies & SMSFs” through my e-learning page FREE at https://insp.red/webinarstructuringpropertydev