Knowing how tax affects your property investment could maximise your returns
ONE OF the common issues discussed around the braai when it comes to property investments is whether one should purchase in their personal capacity, through a corporate structure, or in a trust—with the confidence of such ‘advice’ increasing in proportion to the number of beers that have been downed!
Of course, concerning the question of which is the best route to go, the ans-wer, annoyingly, is: “It depends”. Each person’s tax situation is unique, and depends largely on the complexity of their affairs and their overall net worth.
If you are purchasing a property through a convoluted structure, or have complicated tax issues surrounding your investments, then don’t run the risk of getting it wrong—rather be safe, and seek advice from …