Entity Structuring

Choosing the right entity to hold investment property or carry out developments is critical for ensure a successful investing strategy. The type of entity recommended will be dependent on a number of factors, such as:

• Will there be rental losses?
• Is one spouse earning more income than the other?
• Are there other property assets that could be affected by engaging in development activities?
• Are friends or family involved?

While setting up a Look through Company or holding property in one’s own name might appear to be the best strategy in the event losses will be realised, consideration needs to be given as to how much the losses are, how long they will continue for and whether there are potential issues with “tainting”.

Chartered Accountants Smart Payroll Xero Certified Advisor