Real Plus Accounting Pty Ltd

Tax, Accounting, SMSF & Audit in Mawson Lakes

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Mawson Lakes CPA Accounting Practice

Business accounting quotes   SMSF quotes
 

tick  CPA Accountant and auditor in Mawson Lakes.
tick  Taxation & accounting advice for startup and established businesses.
tick  We provide specialised services for small businesses, individuals and SMSF.
tick  Tax returns for companies, trusts, partnerships, sole traders and SMSF.

Tel 08 8359 0888  | Mob 0403314498 |  Email Us

- Call us now for your 2017 Tax Return appointment
- Free SMSF and small business quotes
- We do online tax and accounting

General Advantages and Disadvantages of Trust Structure

trustDISCRETIONARY TRUSTS

Advantages:

         -  Flexibility and easy income and capital distribution

          - Tax planning can be done in a more flexible way

          - Small business concessions access

          - The 50% CGT discount is available

          - Can provide asset protection against bankruptcy and or creditors with a corporate trustee

          - Simple to wind up

          - Can pay salaries and wages

          - Can pay superannuation countributions for principals

          - Succession planning is possible with a corporate trustee

Disadvantages:

          - Distributions must be in accordance to the Truest Deed and Trustees' Resolutions

          - There is a risk of resettlement when beneficiaries added

          - Losses cannot be distributed

          - Complex to understand the concepts of ‘trust’ which is basically a property

          - More costly than individual or partnership to operate

          - Trustees can be personally liable for some debts of the trust

           - ATO can treat trust as anti-avoidance attempt if setup only for tax advantages

UNIT TRUSTS

Advantages:

          - Significant individuals and CGT concessions to unit holders

          - Easy to introduce new equity partners by issuing new units

          - Less regulations than a company

          - Interests are fixed

          - Asset protection through use of a corporate trustee

          -  Simple to wind up

Disadvantages:

          - Sale of units can trigger a CGT event and attract stamp duty

          - Not flexible with profit distributions as discretionary trusts

          - May not be able to make family trust election

          - Trustees can be personally liable for some debts of the trust

       There is also a third kind of trust called Hybrid Trust which can have some features of a discretionary trust and some of a unit trust.

 

Free quote for trust structure setup:

Tel 08 8359 0888  | Mob 0403314498 |  Email

 

 

 

Office Location

XERO & MYOB Partner

Real Plus Accounting Pty is Certified XERO Adviser and MYOB Professional Partner.

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