Link to Sydney Property Accountants
What Purchasing Entity Should You Use?
In order to take advantage of a Lease Doc loan, like we shared in Lesson 5, most banks will only accept this from a business entity.
This means you will have to create a business entity, which will also benefit you with how you pay your taxes.
In commercial real estate, entities are referred to as ‘structures’.
This structure is a company, which will own the commercial property. You are the director of the company. Because you are the director of the company, the company will pay you a dividend.
There are a variety of ways to structure this company.
It’s important you understand the options available to you and your family, so you can minimize taxes.
Leveraging a ‘flow through structure’ will be a great option for you and/or your family.
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