Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

Family trust winding up and Bright-Line test

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

  • Family trust winding up and Bright-Line test

    Hello,

    Bought a rental property through the Family Trust in 2020. Now considering to wind up the Trust. Is the Bright-Line Test rule going to apply here?

    My family lawyer and I are the trustees, my children and I beneficiaries.

    Thanks.
    Last edited by Perry; 13-09-2021, 04:53 PM.

  • #2
    Why the proposed wind-up?
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

    Comment


    • #3
      Originally posted by Perry View Post
      Why the proposed wind-up?
      Just thinking it no longer serves the purpose...

      Comment


      • #4
        My understanding is yes, it will apply as you have not owned it for at least 5 years, but I stand corrected.

        Comment


        • #5
          Originally posted by Jinsean View Post
          Just thinking it no longer serves the purpose...
          What was the original purpose?
          If it's no longer still valid, perhaps the costs of winding up (now) would be a waste of money?

          Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

          Comment


          • #6
            Maybe approach IRD? (I think), and ask them. I don't know how that would stack up but at least you will get a definitive answer. They may waive it or argue that you were fully aware of the implications. Pesumably you were.....

            Comment

            Working...
            X