Hi all,
Just wondering what you would do if you were us.
Current situation;
Rental Property A
• held in a QC - AA limited (my wife and I are the shareholder 50/50)
• mortgaged to Bank AAA
• revolving credit facility
• bank balance in credit currently ( no outstanding loan)
Rental properties B and C
• held in family trust BB (my wife and I are the trustees and beneficiaries)
• both are mortgage free
Family home D
• held in family trust BB (my wife and I are the trustees and beneficiaries)
• mortgage free
Going forward, we want to buy another cash flow positive property – Rental Property E. And we want to restructure to give us the best assets protection possible. Loss offset ( if any) is secondary.
Here is the our plan;
• Sell Rental Property A to family trust BB. I know this will trigger depreciation recovery but I am not worried as the depreciation claims to date was quite low.
• Discharge mortgage on Rental Property A
• Dissolve the QC - AA limited.
• Buy Rental Property E under family trust BB.
• Apply loan using Rental Property E
As assets protection is our primary goal, do you think this is the best structure?
What would you do differently?
What have we missed?
Looking forward to your opinions.
Thanks in advance.
Just wondering what you would do if you were us.
Current situation;
Rental Property A
• held in a QC - AA limited (my wife and I are the shareholder 50/50)
• mortgaged to Bank AAA
• revolving credit facility
• bank balance in credit currently ( no outstanding loan)
Rental properties B and C
• held in family trust BB (my wife and I are the trustees and beneficiaries)
• both are mortgage free
Family home D
• held in family trust BB (my wife and I are the trustees and beneficiaries)
• mortgage free
Going forward, we want to buy another cash flow positive property – Rental Property E. And we want to restructure to give us the best assets protection possible. Loss offset ( if any) is secondary.
Here is the our plan;
• Sell Rental Property A to family trust BB. I know this will trigger depreciation recovery but I am not worried as the depreciation claims to date was quite low.
• Discharge mortgage on Rental Property A
• Dissolve the QC - AA limited.
• Buy Rental Property E under family trust BB.
• Apply loan using Rental Property E
As assets protection is our primary goal, do you think this is the best structure?
What would you do differently?
What have we missed?
Looking forward to your opinions.
Thanks in advance.
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