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Property Investing… Where to Start??

Let’s Explore 3 Important Questions

 

What Property Investments or Development Strategies to follow?

What Tax Structures should hold my property investments?

What Tax & Estate Planning should I consider?

 

Scroll down this page for answers to these questions on how to develop a sound tax-effective property investment strategy.

Steps to a sound tax-effective property strategy:

Are you looking to build wealth and fund your lifestyle through property investment or development?


Umbrella Property Accountants specialise in all property-related tax and accounting matters.

We provide objective unbiased property and tax advice, with no hidden commissions or kickbacks from developers or promoters.

 

What do I need to consider to get started?

1. Strategy

Three Property Wealth Strategies

-There are three main strategies you can use!

  • Buy & Hold

    • Rental Property Investor 

  • Buy, Develop & Hold

    • Rental Property Passive Developers
    • Changing from a Buy, Develop & Sell

  • Buy, Develop & Sell 

    • Accidental Developers – Mere Realisation
    • Property Developer Enterprise

Each strategy will have differing time-frames, intentions and tax implications and opportunities to consider.

Taxes may be on Capital (CGT) or Revenue (Ordinary Income) Accounts.

If on a Revenue Account there may also be a taxable supply for GST, requiring GST Registration and GST Margin Scheme considerations.

 

 

 

 

2. Structures

Tax Structure for holding properties to invest or develop?

There are a number of tax structures you can use, each with distinct tax implications for holding, estate planning and selling property.

  • Individuals

    • Joint or Common Tenants, Co-Ownership Agreements

  • Partnerships

    • Combination of individuals, trusts, companies, SMSF

  • Trusts

    • Discretionary, Fixed/Hybrid with or without foreign resident taxpayers

  • Companies

    • Directors and interposed entity shareholders’ tax planning

  • Self-Managed Super Fund (SMSF)

    • Up to 6 family members, succession and asset protection, multi-property bare trusts
    • Property Developments via SMSF

  • Joint Venture Agreements

  • In relation to property development, a JV can involve two or more parties combining their financial, managerial and technical expertise to develop or redevelop a project or property.

 

 

 

 

3. Tax Planning

Tax opportunities to consider?

Depending on your investment strategy, intentions, time frames, involvement and tax structure used, will collectively decide the tax planning opportunities we can use.

Smart Property Taxpayers will understand and model the different tax treatments to decide which strategy and tax structures will be used to build their net after-tax wealth to fund their lifestyle income goals.

 

  • Profits / Gains

    • On Sales could be on Revenue or Capital Account

  • Development Costs

    • Could be on Revenue or Capital Account

  • State Stamp Duty  & Land Taxes

    • Purchase and holding costs will be assessed by the Tax Structure and location (state) holding the properties

  • Goods and Service Tax (GST)

    • If using an investment strategy – Buy, Develop & Sell.
      • Mere Realisation – ABN not subject to GST
      • Enterprise Developers – ABN, GST, Margin Scheme

  • Capital Gains Tax (CGT)

    • Time, Involvement, intentions, changed intentions, and tax structures, impact if gains are subject to CGT or ordinary income.
    • Buy & Hold or Buy / Develop & Hold Strategies

Failing to plan is literally planning to pay

MORE TAX!

Are you planning on paying more taxes on your property investments?

Before investing or developing property, it’s critical to consider your intentions, strategy, time frames, and tax structures. Together they will form the foundation of your property wealth journey.

Your ability to plan and grow your wealth while minimising taxes will depend on getting good tax advice from accountants that specialise in and love property like you. Umbrella Property Accountants

Pay your tax, but don’t tip!

We’d rather look for tax opportunities than deal with the tax consequences of poor understanding or implementation of your intentions, strategy, and tax structures. Getting it wrong will cost you time, money and energy to recover.

(Wealth creates time, and taxes will reduce that time).

Tax Recommendations

If and when the ATO ask questions – they have already formed an opinion on the tax outcome, it’s up to you to prove an alternative tax treatment.

You must keep good notes and paper trail that support your intentions and stated preferred tax position.

Let’s work together!

Book an Appointment with a Property Tax Specialist

♠  Rental Property Tax Returns

♠  Develop a property strategy

♠  Property Tax Structures

♠  Property Accounting & Tax Advice

♠  NDIS SDA Property tax advice

♠  SMSF Property Setup

♠  Deceased Estate Properties

♠  Foreign & Expats property advice

♠  GST & Margin Scheme Advice

Book an Appointment

Our Vision

Is to ensure every household is provided with the best property knowledge and tax advice to make informed property investments to fund their future.

Our Why

We love and specialise in property tax advice to support your property investment journey to build wealth to fund your future.

Our How

The gatekeeper to your property team as a Mediator, Scorekeeper, Tax / Estate Advisor, and your biggest supporter over time.

Our – RESULTS

A Net Worth that affords you the lifestyle you need from implementing the right strategies, structures and tax/estate planning advice.