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The best tax structure for property investment is one that will provide the greatest opportunity to avoid high taxation, double taxation, and re-investment and growth for your business. This can be done through three fundamental investment structures:

  • Single asset Funds
  • Multi asset Funds
  • Multi manager Funds

Deciding on the best property tax structure for your business’s property or assets, can be a complicated by a number of factors. Investment structures define how assets are owned, by who, in what way, and this impacts on tax responsibilities – both business and personal.

Property Tax and Investment considerations:

All property owned by a business is subject to property tax. Factors to consider when deciding on what property assets to purchase, and how those property assets should be owned, include:

  • Are you a sole proprietor or co-owner?
  • Is it a family business?
  • What is the size of your business, and what are your prospects and / or plans for expansion?
  • Do you wish to invest for the short, medium or long term?
  • What divestment strategy would you need for the sell-off of properties?
  • Are you planning on offshore property investments?
  • Would you need to create a personal trust to insulate your share of the business’s property assets from your other property assets?
  • What other risk protection do you need as a shareholder?

Owning Properties / Assets:

Factors to consider when deciding on the above include the tax benefits (or otherwise), and risks, associated with:

  • Owning assets under one’s own name
  • Co-owning assets and to what degree (e.g. 50/50 partnership, 20/80 share-hold etc.)
  • Fully owning or co-owning property as a business / company
  • Fully owning or co-owning property as a Trust.

Property tax is a certainty. What isn’t, is the amount you will pay, and how it will impact your business’s bottom-line, value and share values. A tax structure for property investment should be put together by professional financial services with experience in property tax and business tax structures – and should be reviewed annually.

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