Trust Experts ?

[mals69]

Cheers Lissica

If you sell and do not have a trust you still have to pay depreciation back ?

So you pay the depreciation when you put property in a trust and then the trust starts claiming the depreciation ?

All this buying of the property by the trust actually occurs with no actual physical money being traded, name on mortgage etc does not have to be changed ?

[Lissica]

Cheers Lissica

If you sell and do not have a trust you still have to pay depreciation back ?

So you pay the depreciation when you put property in a trust and then the trust starts claiming the depreciation ?

All this buying of the property by the trust actually occurs with no actual physical money being traded, name on mortgage etc does not have to be changed ?

Yes

Yes and No.

Thought IRD got rid of the ability to claim depreciation as of last financial year.

[mals69]

Yes

Yes and No.

Thought IRD got rid of the ability to claim depreciation as of last financial year.

Ta - yeah thats right it was wiped.

"Happy Easter"

[Winston001]

All this buying of the property by the trust actually occurs with no actual physical money being traded, name on mortgage etc does not have to be changed ?

No money needs to change hands but there will be a debt owed which must be recorded and gifted.

As for your mortgage - certainly you must tell the bank. Transferring a property is a breach of mortgage terms so you'll need the banks consent and new mortgage docs.

What you are thinking of doing is normal enough but it isn't simple. Don't be put off, just understand that there is a lot involved. However thats what your lawyer and accountant are for.

[Perry]

As I understand it, there are ways and ways of transferring property.
I imagine that what you have in mind involves 'related parties.' Despite
that caveat, perhaps - just perhaps - the sale/transfer can be done
in a way that avoids any depreciation claw back? You'll likely need
advice from experts for that, despite the good intentions motivating
PT Forumites' views.

[mals69]

As I understand it, there are ways and ways of transferring property.
I imagine that what you have in mind involves 'related parties.' Despite
that caveat, perhaps - just perhaps - the sale/transfer can be done
in a way that avoids any depreciation claw back? You'll likely need
advice from experts for that, despite the good intentions motivating
PT Forumites' views.

Cheers all - yes be going to the experts