Entity for buy, subdivide, sell section, rent house?

[moovet]

Hi,

I am looking at a property in a superb area of PN with subdivision potential. It is an estate and I know it will be hot once it is listed. I want to buy it, subdivide the section, sell the back section and use the profits to make the front house cashflow positive and keep it as a growth property. Now because I am selling half of the section within 12 months should the whole property be bought in my trading trust or can this be under my LAQC or other?

CHeers,


Geoff

[David_W]

HI Geoff

Sounds an exciting project. I personally think a good trading trust (that only has your family trust as the beneficiary) is the best option. Best wishes for the subdivision.

Cheers
David

[moovet]

Thanx David. I suspected as much but didn't want the double whammy of taxation of the profit from the rental if I do eventually sell it. Otherwise I would have to hold it for a few years perhaps before I subdivide it under the LAQC arm and take the annual cashflow losses.