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Selling owner occupied to LTC

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  • Selling owner occupied to LTC

    I want to sell my owner occupied home to LTC in market rate and rent it someone else. I want also to buy a home for myself as owner occupied in my own name. what tax and accounting issue I need to be aware of it?

  • #2
    As far as tax issues go you should be OK so long as you've lived in the property for most of the time you've owned it - if not, Brightline could be a concern. Less likely, if you bought the property with the intention to flip it for profit, or have a regular pattern of buying/renovating/selling previous homes, or have recently completed a subdivision, that could be a concern too.

    An LTC should have a full set of financial accounts completed every year. For that, you should have an accountant preparing these properly - this isn't compulsory, but really really highly recommended. Suggest you get an accountant sorted, and ask them for a detailed response. I've recently closed my books so can't help there, but Rosco on the forum here is great.
    AAT Accounting Services - Property Specialist - [email protected]
    Fixed price fees and quick knowledgeable service for property investors & traders!

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    • #3
      Originally posted by MS1353 View Post
      I want to sell my owner occupied home to LTC in market rate and rent it someone else. I want also to buy a home for myself as owner occupied in my own name. what tax and accounting issue I need to be aware of it?
      Hi,

      Is your property a good rental? I would really think about this, before going any further. A good question to ask yourself, is if you didn't own the property, would you buy it as a rental?

      This blog is a little old and is before Ring Fencing, but will still give you the general idea.

      Also ensure you are holding the rental long term, as the brightline test will restart, and if your new entity sells within 5 years, any gains to the new entity will be taxable.



      Ross
      Book a free chat here
      Ross Barnett - Property Accountant

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