How should I structure my assets?

Our Experts Answer:

The only structure that will offer you asset protection is a trust, and even then, only to the extent that you are able to grow your trust capital by gifting. It is essential that you get a contracting out agreement with any partner to ensure you have acknowledged your respective separate property.

After the budget, LAQC's are now to be taxed as look through entities similar to limited partnerships. This places some limitations on the flow through of losses but may well still be a viable option. Compliance costs are likely to be greater than if you simply held the property in your personal name. This is the simpliest and easiest and still allows tax losses to be claimed. Because it offers no asset protection the contacting out agreement with a future partner becomes very important though. 

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.