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I have tax credits!

Discussion in 'Accounting, Tax & Legal' started by Giddo, 3rd Jan, 2007.

  1. Giddo

    Giddo Active Member

    Joined:
    9th Jun, 2006
    Posts:
    42
    Location:
    SE Qld
    Hi all,

    I shouldn't complain, I know it is a good thing!

    I have about $70,000 in income tax credits. These are all in a company name. I got these through losses incurred by setting up a CG likely development; sacrificing immediate rental income.
    Now that that particular phase is over, I would like to use those credits if possible.

    The situation now is that the company income after all deductions is neglibible; and unlikely to change short term.

    So I need to make some profit in order to make it work for me.

    As I am only 4 years from retirement age; I was thinking about doing some investments in the company name, and placing the proceeds into super.
    I have a bit of money in my own name. Can I lend the company money; let it use it for the investments, then recover my money later?


    I am not a big fan of super cos it ties money up.

    Anyone have any suggestions for me.:)
     
  2. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    Location:
    Sydney
    Hi Giddo
    Not sure what you mean by tax credits. Do you mean tax losses ?
    nickM
     
  3. Giddo

    Giddo Active Member

    Joined:
    9th Jun, 2006
    Posts:
    42
    Location:
    SE Qld
    Yes Nick,
    I mean that the company has got accummulated tax losses.
    Shame not to use them eh??:)
     
  4. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    Location:
    Sydney
    Yes you can lend money to the company to invest with. This will help use some of the losses providing the shareholding does not change and you comply with the company loss provisions.

    The company could also be a beneficiary of a Disc Trust and receive income that way. Howerver an interposed entity election would need to be completed to allow this to happen.

    NickM