How to SAVE TAX & Protect your Property Portfolio in 2022 | Investing in Name vs Trust vs Company

[@AusPropertyMasteryWithPK]

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[@kanmaj1012]

A very informative discussion. I was just trying to get my head around trusts and stumbled upon this channel. Will be following this one. Thanks Emmanuel for your inputs.

[@susanleung357]

Really liked the trust discussion that keeping it simple and structures aren't always necessary for people who don't have big portfolios.

[@Bryce_savage91]

Finally someone talking about this 👏

[@12345xfire]

The depreciation discussion seemed to have the flavour that there is little benefit due to the addback, however it's definitely worthwhile getting a depreciation schedule even if your property is a decade old in some cases. While it's true that depreciation is added back, you have claimed 100% of the deduction in prior years but are only taxed on 50% of the capital gain (after 12 months) so there is still a huge benefit. The second reason depreciation is worth while is that you get the deduction every year but only experience the addback on sale, so there's also a huge time value of money benefit. And anyone looking at trusts, KNOW your land tax rules! Trust land tax will kill you in some states 🤣

[@AusPropertyMasteryWithPK]

Thanks a deep schedule is good to get, the idea is depreciation is not a strategy

[@12345xfire]

@@AusPropertyMasteryWithPK Yes, definitely agree that tax minimisation should never be first priority.

[@maxg5567]

Exactly. I always hear pk talking about adding depreciation back, making it sound like it's 100% of the depreciation claimed. It's only 50% and then added to your assessable income and tax at the rate which end up being barely 20% of the full depreciation. That's even excluding time value of money owned in the past which is also very important. A little bit deceiving comments to indirectly attack new build strategy in my opinion...

[@brunoramone601]

no land tax threshold if you use a family trust, best is a unit trust but you lose asset protection however better for servicing(borrowing power) and receive CGT discount.

[@elamonrahul]

Good one 👌👌. Cleared a lot of confusions related to this topic.

[@AusPropertyMasteryWithPK]

🙏🏼

[@MrSreetvm]

Great video,, I just had a meeting with them last week!

[@AusPropertyMasteryWithPK]

Awesome!

[@divinelyshpongled]

Great video - you guys both seem like lovely, trustworthy people. I was wondering if Emmanuel knows much about tax for people who are living a more digital nomad lifestyle ie. working in various countries outside of australia, with income being received from overseas. Thank so much!

[@AusPropertyMasteryWithPK]

Just get in touch and ask him :)

[@alisaljoughian3857]

I thought a company that earns less than 2 mill, qualify for the 50% CGT exemption ?

[@arta6784]

I thought so too, actually I read it's a CGT Exemption if you hold for 15 years that is.😊 You will not pay CGT when you dispose of an active asset if all of the following are true: You meet the basic eligibility conditions. You or the significant individual (if you are a company or trust) is 55 years or older and the event happened in connection with your retirement, or permanently incapacitated (no age requirement). You continuously owned the CGT asset for the 15-year period ending just before the CGT event happened. A CGT event happening in connection with an individual's retirement depends on the circumstances of each case. There would need to be at least a significant reduction in the number of hours the individual works or a significant change in their present activities to be regarded as a retirement. The timing may precede or proceed actual retirement. There are modified rules about the requirement that the asset is continuously owned for at least 15 years for CGT assets acquired: or transferred under the rollover provisions relating to assets compulsorily acquired, lost or destroyed due to marriage or relationship breakdown. You must choose to apply the small business 15-year exemption and apply it first. You do not have to apply capital losses against your capital gain before applying the small business 15-year exemption. If you make a capital loss from the CGT event, you may use the capital loss to reduce other capital gains.

[@arta6784]

How about the 15 YEAR RULE ???? No CGT

[@fayazmohammed3031]

Hi PK, thanks for all the informative videos, just wondering what is your advise/opinion in terms of the additional payments made during the years to maintain an investment property, I understand we can claim back via the negative gearing for the excess of expenses to income by marginal tax rate but there is leftover potion about 50 to 65%, can we claim back that 50 to 65% portion which we spend during the years to service the loan and maintaining the property upon the sell of property before CGT payable and as well any of the capital expenditure leftover after depreciation?

[@Gozna007]

Great content 👌

[@Rianc2882]

Thanks

[@umeshg9107]

It is true that as a company there is no CGT discount but the tax rate is lower than personal rates and Capital Gains is in millions for any property in Sydney.

[@brunoramone601]

yes no CGT discount for companies.

[@jonathanchai8702]

Hey PK, not sure if you're gonna get this. I understand Pty Ltd is not an ideal entity for investment properties, but would that help with the upcoming interstate land tax in QLD? I have a block of land that's due to register next year which I'll build for investment. Currently under my name, but contemplating whether to move it under my Pty Ltd to save on land tax.

[@manamifox2405]

Great video. If he talked while showing some drawings, it boosted my further understandings. Also, he could have touched buying a property through SMSF.

[@AusPropertyMasteryWithPK]

there a whole 30 min session on SMSF done last year on this channel

[@BK-pl3vy]

Even if the person is employed and not a business owner, is there some merit in having the property in a trust rather than personal name? For example, he buy a couple of properties in his own name and rents them both out. He decides to save costs by managing those properties himself and finds himself in a situation whereby he is sued by one of his tenants due to a fall inside the premises. In that instance, if the tenant is successful in their legal action, assuming they were able to prove negligence, then potentially both of his properties are up for grabs?

[@gcg2927]

Could you ask about principle payments in either a company or a discretionary trusts As I understand it principle payments are post tax and if you’re on the top marginal tax rate it’s much better to be in a company

[@adrianplayer-propertyinvest]

PK Do you use Emmanuel? Im chasing a good invetsment property focused accountant. They are few and far between.

[@AusPropertyMasteryWithPK]

He’s very good especially for the large portfolio investors like you

[@dorisxu2006]

Hi PK could you please link your guests detail or full name, so we can look them up?

[@AusPropertyMasteryWithPK]

He mentions at the end 👍🏼

[@samiraorchard705]

Did anyone get his full name and where he works

[@kiyanriahi]

loved this property structure video "value bombs" go pk.

[@AusPropertyMasteryWithPK]

Thanks brother

[@crinakere1940]

Any contact details for the Accountant Emmanuel?...

[@ghaithal-tabakjaly3872]

Thanks PK, great vedio. Can you please put the contact details for Emmanuel.