I've been reading with interest Offsetting rental loss - advantage of not having house in trust? and particularly noted Bean's comments in Post 16
Yes, I agree, the Government has removed the $27K/year per person gifting to a Trust. It was actually costing the Government MORE to administer the Gifting programme than the $'s actually being gifted. Typical.
HOWEVER, I was advised by my accountant to keep continuing with the $27K/year gifting, as as yet nobody has been challenged by the IRD/Government agencies with regard to equity held in a Trust.
I have been told and admittedly have not personally sighted, the application forms for Long Term Care/Government subsidy (whatever it's called) still ask what one's personal assets are and how much gifting have you done in the last year.
This is a grey area between what the Government has said ie a $27/year gifting is cancelled and what Government Departments require you to declare ie Long Term Care.
I don't believe there has yet been a Joe Public case, where JP has had to prove their position with the IRD at Court.
Could a couple of accountants on the forum address this issue please? I'm more than happy to be proven wrong and that everyone is happily gifting left, right and centre legally to their Trusts BUT has anybody looked at this other document?
The limit on gifting was still in place.
Maybe I would be better off to get it out as a capital distribution, as now there is no limit on gifting so no advantage in getting in debt to the Trust.
HOWEVER, I was advised by my accountant to keep continuing with the $27K/year gifting, as as yet nobody has been challenged by the IRD/Government agencies with regard to equity held in a Trust.
I have been told and admittedly have not personally sighted, the application forms for Long Term Care/Government subsidy (whatever it's called) still ask what one's personal assets are and how much gifting have you done in the last year.
This is a grey area between what the Government has said ie a $27/year gifting is cancelled and what Government Departments require you to declare ie Long Term Care.
I don't believe there has yet been a Joe Public case, where JP has had to prove their position with the IRD at Court.
Could a couple of accountants on the forum address this issue please? I'm more than happy to be proven wrong and that everyone is happily gifting left, right and centre legally to their Trusts BUT has anybody looked at this other document?
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