Peader2468
New Member
- Messages
- 2
Age:38
Spouse’s/Partner's age:38
Annual gross income from employment or profession: €110,000 base + c. €60,000 bonus - private sector company director
Annual gross income spouse: €28,000 - self employed / part time
Home House Value: €475,000
Home House Mortgage: €308,000 with PTSB @3.00% for next 5 years. Repayments c. €1,400 p/m
Investment Property Value €230,000
Investment Property Mortgage: €157,000 with PTSB @5.65% for next 5 years. Repayments c. €980 p/m
Investment Property Costs: Service charge, Insurance, Property Tax c. € 200 p/m
Investment Property Rental Income: €1,900 p/m
Other borrowings – car loans/personal loans etc: None
Pension Scheme:
Yes - I contribute €916 personally and my company contributes €641 p/m
Her - None
Dependants: 2x kids; 4yr and 2yrs
What specific question do you have or what issues are of concern to you?
I’ve established a new , separate business to my annual gross salary noted above and it is on track generate c €600k gross profits within 24months. I’m considering using these initial profits from this business to purchase my current personal investment property and potentially buy a second investment property.
Question 1: I want to reduce my personal outgoings each month and free up cashflow, which is why I am considering transferring my Investment property to a Ltd Company - the limited company will use its profits to clear my personal mortgage on the investment property and reduce my monthly liabilities by €980 (the investment mortgage amount). Based on the above information, we think that transferring our current investment property and buying any future investment properties via a dedicated Ltd company is the best solution for us, to minimise personal income tax and manage transfer of property to our kids in the future, but welcome any comments if others believe otherwise?
Question 2:
I want to establish a company structure from the outset that will enable my wife and I to have controlling shares over the Ltd company that holds the property investments, but have my kids named as shareholders in the company for future estate planning purposes to minimise future tax inheritance implications. Is this possible is have young kids named as shareholders or have shares held in trust?
If so, what would this shareholding structure look like?
Spouse’s/Partner's age:38
Annual gross income from employment or profession: €110,000 base + c. €60,000 bonus - private sector company director
Annual gross income spouse: €28,000 - self employed / part time
Home House Value: €475,000
Home House Mortgage: €308,000 with PTSB @3.00% for next 5 years. Repayments c. €1,400 p/m
Investment Property Value €230,000
Investment Property Mortgage: €157,000 with PTSB @5.65% for next 5 years. Repayments c. €980 p/m
Investment Property Costs: Service charge, Insurance, Property Tax c. € 200 p/m
Investment Property Rental Income: €1,900 p/m
Other borrowings – car loans/personal loans etc: None
Pension Scheme:
Yes - I contribute €916 personally and my company contributes €641 p/m
Her - None
Dependants: 2x kids; 4yr and 2yrs
What specific question do you have or what issues are of concern to you?
I’ve established a new , separate business to my annual gross salary noted above and it is on track generate c €600k gross profits within 24months. I’m considering using these initial profits from this business to purchase my current personal investment property and potentially buy a second investment property.
Question 1: I want to reduce my personal outgoings each month and free up cashflow, which is why I am considering transferring my Investment property to a Ltd Company - the limited company will use its profits to clear my personal mortgage on the investment property and reduce my monthly liabilities by €980 (the investment mortgage amount). Based on the above information, we think that transferring our current investment property and buying any future investment properties via a dedicated Ltd company is the best solution for us, to minimise personal income tax and manage transfer of property to our kids in the future, but welcome any comments if others believe otherwise?
Question 2:
I want to establish a company structure from the outset that will enable my wife and I to have controlling shares over the Ltd company that holds the property investments, but have my kids named as shareholders in the company for future estate planning purposes to minimise future tax inheritance implications. Is this possible is have young kids named as shareholders or have shares held in trust?
If so, what would this shareholding structure look like?