How to Own Property
Owning investment property (that is property that earns rental) is one of the most important means of building passive income for retirement.
However, it is most important that the property be owned in the right structure. This has been made easier now that Transfer Duty is the same for companies and trusts as for individuals,
Unfortunately, there is no “one size fits all” and you really should get expert guidance before buying. Derek Springett provides this guidance at no charge. Click here to set up an appointment.
Here are some general guidelines –
|
Description |
Owner |
Reason |
|
Primary Residence |
Company owned by Trust |
Asset protection, pay 18.5% CGT on sale, not 27.3% |
|
Primary Residence |
Self if zero risk of bankruptcy |
CGT saving on sale |
|
Non-rental earning |
Trust |
No Estate Duty No CGT on death |
|
Rental earning |
Company owned by Trust |
Pay 28% tax, not 40%. No Estate Duty No CGT on death |
You can learn more about trusts here
General tax structures related to property sales
Should you wish to make an appointment, please feel free to visit Derek’s diary and book a time that suits you.
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Need a shelf company or CC, a tax clearance, VAT registration or B-BBEE certificate? We offer a wide range of such services.
2 comments
Reply
Hi I need a lot of your services how can i get tax clearence and also register a Trust
Hi Emmanuel,
I think the best thing is to make an appointment to have a chat on Zoom or Google Meet. You can do that here – https://harbourassociates.youcanbook.me/
Because you want to talk trusts, you should book 2 hours.