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Best structures for long terms Holds and Trading inbetween

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  • Best structures for long terms Holds and Trading inbetween

    Hi all, I have got professional accountant opinions and few from friends on this. Each one is slightly different, so wanted to get a forum opinion to add to the mix and pick one from the rabbits hat. Situation is as follows:

    The situation:
    • Developing a long term hold - I have a property that is a long term hold and has some small development potential (can subdivide into 2 or 3 lots). I dont have the money at the moment to develop it to its full potential, so will just hold on for a few more years and then revisit the development. The objective of this development would still be long term hold, for rental income. I may sell on of the say 3 properties in 10-15 years time. But generally this property lends itself to holding for a while
    • Short term projects / trades - to feed my FOMO and need for more cash to eventual develop the above, I am thinking of doing some short term and cheaper projects (reno, add-value etc) for the next 2-3 years.
    • Both the above would be/are in two seperate companies,
    • I am setting up a new Trust that has corporate Trustees (of which myself and my wife are directors/shareholders), along with the lawyers corporate Trustee company
    • The new Trust will own the shares of the existing company (long term hold) and new company (for short term trades)
    • The plan would be to do the short term projects / trades for the 2-3 yr period and shut the company down, then start planning the long term development
    • How do I safely do the short term projects / trades for the next few years without tainting the long term hold/development property?
    • If I sell the shares of the company that holds the current long term hold property to the new Trust, will that trigger Bright Line (in case I have to sell in the next 5 years)?

    Appreciate the feedback on this complex conundrum.
    Living a more meaningful & enhanced life with investments, business and blogging. www.theFIminator.com