Professional

The Background

• Doctor – Aged 45, Married, 2 Kids
• Sole Trader with profits of €150,000 – €200,000
• Recently purchased a new home, purchase price €1 million – Loan of €750,000
• Owns a practice premises on the High Street, prime location, value of €1+ million, which includes a small site with potential for an apartment, in own name with no borrowing

The Issues:

• Very large homeloan
• Not utilising significant commercial practice premises
• Cannot pay self rent for property he owns

The Solutions:

• Split portfolio between practice and site
• Sold property to his wife for €700,000
• No Capital Gains Tax or Stamp Duty
• Now charges rent to practice
• Created tax offset for practice
• Took out large portion €300,000 off homeloan and removed short term loans
• €300,000+ remaining tax free money for investment purposes
• Diversified from property into managed funds

The Alternative solution:

• To repay loan on a pension backed mortgage basis