Business partner and I are looking at splitting our company. We are looking at splitting the properties between us with one of us keeping the LTC and the other forming a trust and purchasing the some of the properties at market rate. All properties have been held for 6 + years. Equity is not an issue from the banks point of view.
We see the split as a 2 stage thing. First the sale of any properties by the LTC to the trust. Then the buying out of one of the shareholders.
The current LTC has claimed depreciation against all of the properties. How should the depreciation be handled on the sale of the properties? Would any repayment to the IRD be due?
Personal income tax would be handled by a final set of accounts during the buy out.
Are we missing anything or should be looking at anything closer?
Cheers.
We see the split as a 2 stage thing. First the sale of any properties by the LTC to the trust. Then the buying out of one of the shareholders.
The current LTC has claimed depreciation against all of the properties. How should the depreciation be handled on the sale of the properties? Would any repayment to the IRD be due?
Personal income tax would be handled by a final set of accounts during the buy out.
Are we missing anything or should be looking at anything closer?
Cheers.
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