Tax efficient structuring

[Bicameral]

Hi all

I am a single parent, in a full time salaried job. I have owned an LTC rental property for just under 10 years.

My rental property was my original home for few years prior to becoming the rental and being transferred to LAQC/LTC.
I am the LTC director with 100% shares in it. The current LTC mortgage is 50K.

I’m currently renting a different property and I’m thinking about buying a new home for myself and the kids. New total mortgage will be 500K

What good ideas and reasons can you think of, about how to re-structure properties / ownerships for best tax efficiency ?

Can LTC sell rental property to me at market value, then close and family trust be created for the home protection ( my kids , future relationships etc )

Any other good reasons, ideas are much appreciated.

TIA

[Anthonyacat]

It really sounds like you should be speaking to a property accountant. Many offer cheap initial consultations which would give you everything you need.

For starters, I don't know why you would want to sell the rental to yourself. Usually people want to get rentals into LTCs, not take them out.

There's no where near enough information in your post to provide detailed advice, but there's a good chance your LTC can refinance the current property, and pay this money to yourself, allowing you to buy your home with mostly tax deductible debt.

[Bicameral]

Thank you Anthony, sorry I am not versed with property investments, could you please let me know what other information you need in order to give more detailed advice?

[Anthonyacat]

Basically, your whole situation needs to be explored in more depth. As I've said, best to do this one-on-one with an accountant.

A copy of your most recent accounts would be a good start, to see the size of the shareholder current account among other things. Knowing the amount of equity in the rental (value minus debt) is also valuable.