Hi, need to clarify my doubts about forming company for property investment:
1. Capital gain - NZ has no capital gain tax. Technically if I sell my properties at a profit, I need not pay tax. However, if the properties are owned by company, the gain could be taxed as profit?
2. Estate duty - NZ has no estate duty. In this context, it makes no different if the properties are owned by individual or company?
3. Creditors - Most of the time company directors are guarantors for mortgage loan. What benefits in term of assets protection?
4. Income - Depending on property owners' income levels, tax rates for individuals could be more beneficial than company?
5. Expenses - Can individuals offset property related expenses from property rental income?
6. GST - This is one main benefit I see in forming company for property investment
Is LTC status designed to mitigate some of my doubts? Thanks!
1. Capital gain - NZ has no capital gain tax. Technically if I sell my properties at a profit, I need not pay tax. However, if the properties are owned by company, the gain could be taxed as profit?
2. Estate duty - NZ has no estate duty. In this context, it makes no different if the properties are owned by individual or company?
3. Creditors - Most of the time company directors are guarantors for mortgage loan. What benefits in term of assets protection?
4. Income - Depending on property owners' income levels, tax rates for individuals could be more beneficial than company?
5. Expenses - Can individuals offset property related expenses from property rental income?
6. GST - This is one main benefit I see in forming company for property investment
Is LTC status designed to mitigate some of my doubts? Thanks!
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