I know you’re busy so I won’t waste your time. In short, here’s a video with some of my best tax minimisation and asset protection strategies.
I’ve never shared this information previously and, I know I’m a little biased, but I believe the content in this video is worth thousands (that’s what I paid to learn it). Please watch it for free with my compliments.
If you want to see more videos on asset protection strategies (or anything else for that matter) you must post your comments below – I’ll only create what my clients ask for!
Your business/trading philosopher,
Ps. Like my multiple streams of income video, I’m really proud of this content and would very much appreciate it if you’re on twitter, twitter it. If you’re on dig, dig it. If you’re on Del.icio.us, bookmark it. In short, if you can pass it on, I’d really appreciate it.
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I just open, that very interested,
you are very smart you should be a teacher.
Thank U, that’s Enlighten
Great idea’s David, I will definatly speak with my accountant,
your video’s never cease to amaze, great content, keep up the good work
Thanks for the feedback guys! Much appreciated. The video has been very well received and pushed me up to be “#7 – Most viewed (today) – Gurus – Australia”.
I listened to your talk about asset protection and tax minimization. I don’t know if you have much experience setting up proprietary limited companies (corporations), but your system as a severe flaw.
If you put money into the proprietary limited to avoid being taxed over 30%, when you need to take the money out and give it to the individual, it is taxed as income of the individual. Therefore you have created a situation where income (profits) are doubled taxed. Asset projection is one thing and tax minimization is another. I think you need to be very care when you give out advice, please consult your accountant.
great information well laid out out thanks for that.
Thanks for the pointers David.
Philip: Thanks for your email
#1 This video is not meant to be tax advice … I just wanted to trigger a few ideas. Please consult your financial advisers before doing anything 🙂
#2. Once money is paid into the pty ltd I do not take money out and give it to an individual. The pty ltd is the last resort in the distribution process. This vehicle is used as a holding pen – these profits are to be used for other business expenses as they arise. It merely ensures you don’t pay more than 30% tax at any point in time.
#3. Now I’m not accountant, so I don’t want to give financial advice, but check out Craig’s comment below… it explains how to distribute profits with franking credit (thereby avoiding the double tax issue). That said, it’s best to ask your accountant on this.
Heinz: Thanks 🙂
Greg: It was my pleasure
Your Trading Coach,
Another thought provoking piece of advice. Congratulations
You have given me a lot to think about, strangely in approximately 25 years of association with accounting types I have not had one suggest looking at trust strategies.
Probably because ours was a small company and their main interest was focused on preparing annual accounts and tax returns. As with most things, you get only what you ask for.
Very clear and well presented. Could you do a piece on what you can do to maximise legitimate claims for expenses as a trader, especially when first starting out?
You will not get taxed twice by the company distribution. It should be paid as a franked dividend and as such not get taxed twice. You get a franking credit (like a rebate) for the company tax paid. It is a great structure and one used by many smarter people than us here.
very well explained david, and a good further explanation from craig in regards to company distribution. i have a very new pty ltd company set up for my buisiness and am still getting my head around the whole concept. you are much better at explaining concepts than i am. i am going to show your video to my partner to sum up what i have been trying to convay without much success, thanks.
keep up the good work. kim
i put money into my pty ltd when i was getting it up and running. the money went into a loan account within the company. i have since taken money back out after the company made money. the company paid me back out of the loan account without having to pay tax again. once the loan amount is paid back to me, i can take money out as dividends as explained by craig. a good accountant will take care of that side of things. if its not done right you could end up paying tax twice as mentioned by david.
i am not an accountant or financial advisor, i am just sharing my experience with running a pty ltd.
I knew bits and pieces beforehand, but you set it all out nice and clearly
Nearly all of your videos are valuable. Sometimes you produce a gem and the
asset protection and tax minimisation video is one of those.
Keep up the good work!
Max: I always pay top dollar for excellent advice 🙂
Clyde: It’s best you ask your own accountant on this one.
Craig: Nice. Thanks for further clarification – much appreciated.
Kim: Glad I could help and thanks for sharing.
John: That’s what I do 🙂
Carl: Remember to pay it forward.
Great video….I am taking my time getting into the trading business and I am looking at best ways to minimize taxes and create the business. The more ideas I am able to learn about the better I’ll be able to maximize the effectiveness of profits. Thanks again…
I have some accounting quailifcations( not CPA or Degree) and have known the basics of what you have explained in your video. It has taken me about 3 years of tinkering on the edges to fully understand, you have done a great job in under 20 mins, Great work.
All comments above have been correct.
My only extra comment is that each time you add a element to the structure like having a company as trustee ( this is called a Corporate Trustee to use the correct term for it) you add another $1200 minimum to your accountancy fees ) and that is every year it operates, so you really need to have some really big profits or substantial assets to protect to set up the structure you mention. I would at a conservative guess say you would expect accountancy fees above $7000 per year plus other ongoings like the ASIC annual filing fees etc for the structure outlined in your presentation, I only mention this so that those looking into it understand , it’s not cheap to have as complicated structure as shown , but having said that, if you have the need to minimise the tax then you have correctly outlined and explained one of the best way to go about it. As you said , it has to fit with your personal situation otherwise a single trust or company or even individual is fine.
If your really want to take this to the next level, perhaps a video on having all this done within a Self Managed Super Fund , now that you can trade derivatives and such like , would also be most helpful , in a Super fund the goal is only 15% in the dollar tax but the down side in the preservation rules and other limitations attached in how it can be operated and contributions made etc.
Thanks for the excellent presentation 🙂
Thanks for this example, I currently use this structure plus another level, in your example of T1 & T2, I have taken a Fixed and floating charge ( or mortgage) from 1 to 2 over the assets in T2 to remove any equity ( and visa a versa) so in the event of being sued the liquidators can not obtain any equity on assets in any trust. This work well and in the days of litigation it is important to protect oneself.
Yes the fees my accountants bill is about $3k higher per year with these extra steps, but well worth the tax deduction.
Steve: My pleasure.
Mark: Thanks for the excellent feedback and suggestions! You’re spot on… unless you have either good cash-flow or a load of assets, this structure may be a little over kill. Take it with a grain of salt, and apply it where suitable.
Greg: Great to hear you’re using the structure effectively and thanks for the extra insight!
Your Trading Coach,
Thank you for the video. I have just started trading currencies and, thanks to your presentation, I will definitely concider this as a business.
i buy your ebook
realy its clear and useful
i want ask you about
secret of nicolas davas and his method
is it useful …????
Great info David,this is not talked about