Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

How to pay an extra $20,000 to IRD each year, for no reason

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • How to pay an extra $20,000 to IRD each year, for no reason

    https://www.dropbox.com/sh/17tu4chmp...rYJ9yjfBa?dl=0
    Book a free chat here
    Ross Barnett - Property Accountant

  • #2
    I need to work on my Property Talk skills! This might be easier https://www.dropbox.com/s/1t8nqx4rb1...oom_0.mp4?dl=0
    Book a free chat here
    Ross Barnett - Property Accountant

    Comment


    • #3
      Hi Ross

      Yes the link worked.

      Very interesting so in your scenario isn’t it too late to change structure to get the $$ out of the LTD?

      cheers

      Donna
      SEARCH PropertyTalk, About PropertyTalk

      BusinessBlogs - the best business articles are found here

      Comment


      • #4
        Originally posted by donna View Post
        Hi Ross

        Yes the link worked.

        Very interesting so in your scenario isn’t it too late to change structure to get the $$ out of the LTD?

        cheers

        Donna
        Hi Donna,

        Yes it is possible, but can be very difficult.

        - Can't liquidate if still have other properties.
        - could look at selling other properties to new entity, but that also has lots of catches, plus legal fees, plus brightline reset
        - become an LTC later has implications too, plus can't become an LTC until 1/4 of next year. So still could be major interest and extra tax.

        Generally accountants don't find out about the overdrawn current account until much later, so can easily be a year before it is found out.

        Also many accountants don't deal with wind up issues well, so they sit around for a long time.

        Overall a nightmare, so therefore expensive to resolve.

        Ross
        Book a free chat here
        Ross Barnett - Property Accountant

        Comment


        • #5
          Thanks Ross - if your next webinar is on this topic add the link to it in this discussion.

          cheers,

          Donna
          SEARCH PropertyTalk, About PropertyTalk

          BusinessBlogs - the best business articles are found here

          Comment


          • #6
            Thanks for sharing Ross.
            I've set up a LTC to manage my parent's rentals as their income wasn't equal (one retired one still working), now with both of them retired their income is pretty much the same, and I'm wondering what's the benefit of LTC now, maybe I should liquidate the LTC and transfer the title back to my parents....

            Comment


            • #7
              Originally posted by Chelsea View Post
              Thanks for sharing Ross.
              I've set up a LTC to manage my parent's rentals as their income wasn't equal (one retired one still working), now with both of them retired their income is pretty much the same, and I'm wondering what's the benefit of LTC now, maybe I should liquidate the LTC and transfer the title back to my parents....
              Hi Chelsea,

              It depends on the exact situation.

              You may be able to rearrange shareholding to 50/50 - get full advice from a property accountant on this, as there can be catches like the share transfer being a taxable sale caught by brightline rules. And the Brightline restarting.

              What is the legal costs to sell the property, what is the legal costs to buy the property back in your parents names? And brightline restart! What is the extra cost keeping the LTC? Maybe $45 annual company office return a year. Generally I would look to keep the LTC as much cheaper and easier, plus no brightline reset.

              Ross
              Book a free chat here
              Ross Barnett - Property Accountant

              Comment

              Working...
              X