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l.a.q.c structure

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  • l.a.q.c structure

    Hi, I currently have four investment propertys owned by a l.a.q.c with a 50/50 shareholding between my partner and myself. Each property is financed on seperate mortgages with 1 property freehold. My question is, would we be able to move back into the freehold property to live in temporarily if we are not claiming any tax deductions on that individual property. Any replies with info would be much appreciated.

  • #2
    Hi Crombie, yes you can move back into the property. You of course cannot claim expenses on the property for the period you are living there as you have said.


    • #3

      Thanks for your reply Murray,
      I was concerned that by having all the I.P's in a L.A.Q.C we may have lost some flexibility, in being able to actually live in the freehold property if we needed to at some stage. We are not ready to buy a property for our place of residence and my understanding of the issues raised by I.R.D in regards to some people claiming deductions while living in their I.P's, had caused some doubt.


      • #4
        Do you have to pay back any depreciation claimed to date on the property as you are changing its purpose?



        • #5
          Depreciation in this case a bit of a grey area. Pragmatically it depends on how long you are going to live there for, if is just a few months I would not worry about it. If it was more than one year then you could be held to be changing the purpose and proberbly should pay back depreciation. Of course if you are the sole shareholder in the LAQC then it could always rent to your partner and leave you out of it. Then only your portion of the occupancy would be excluded. You will find differing views on this so always err on the side of caution.