Recorded Webinar: Tax Consequences of Financing Options in Property Developments

Taxation is a central element in deciding what financing options to pursue when funding property development. This session provides an update on the key income tax issues that need to be considered:

• What structure to use - company, SPV trust, partnership, incorporated JV, unincorporated JV or development agreement?

  • 2018/19 Budget announcement - MIT and AMIT CGT discount changes

  • Negatively gearing in a trust

  • Quarantining tax issues from security interests

• Debt versus equity:

  • Treatment of senior debt, mezzanine debt and equity

  • Division 974 rules

  • Interest withholding tax – potential exemptions

  • Recognition of financing costs – section 8-1 and TOFA rules

  • Thin cap and other integrity provisions

• Carry forward of tax losses

• Affordable housing exemptions

• Alternative funding models – preference shares, convertible notes and other finance alternatives