Living in my LTC owned house?

[richard56]

Hi
My LTC owns a house in the Mainland that I will be moving into soon.
It will soon become my POPR.
I will not charge myself rent and I will not claim any expense against the house.
Can you guys see any issues?
Thanks
Richard

[donna]

Hi Richard,

your PPOR would be subject to capital gains tax I believe - check this one out.

also getting a loan using your PPOR maybe be subject to investor finance rules,

I am sure there’s more reasons to not have your PPOR in an LTC.

cheers

Donna

[richard56]

Hi
Thanks for the reply.

The LTC has one other rental property in it and that will be sold in about 5 yrs time
.
Then the LTC will be wound up.

The place that is to become my PPOR will be sold into a Trust in about 3 yrs time.

No loans are going to be put against the PPOR as I am retiring from this stressful/unappreciated business of providing
accommodation.
Sick of being made out to be the bad man.

Thanks
Richard

[donna]

I was on the GRA.co.nz end of year prepping webinar tonight and if you can watch the replay of it - it had some good info on changing structures and when you can be exempt from some of the rules like CGT etc.

cheers,

Donna

[BlueSky]

Do you have a link to it Donna?
What if debt free properties in LTC, to be transferred to trust? No point unwinding it as it will restart brightline again. But heard there are provisons for roll over relief.
Anyone restructured recently ?

[richard56]

Do you have a link to it Donna?
What if debt free properties in LTC, to be transferred to trust? No point unwinding it as it will restart brightline again. But heard there are provisons for roll over relief.
Anyone restructured recently ?

Hi
My issue is that I dont want to put my LTC owned POPR in to a Trust right now as you have to "sell" it to the Trust...the way I understand things.

Having only owned it for coming up to 2 yrs there is the Brightline test to consider.

I still believe that if I dont claim any expenses and dont charge myself rent then I cannot see the issue.."tax wise"

Thanks
Richard

[donna]

No recording available online but I’ll find out if GRA did record it and if they will upload it.

cheers

Donna

[BlueSky]

Cheers Donna

[BlueSky]

No recording available online but I’ll find out if GRA did record it and if they will upload it.

cheers

Donna

Had a quick look , it doesn't say much about LTC transfers.

[donna]

^^ The webinar recording is online on GRA tomorrow. The roll over relief for transferring entity to entity is covered on it. I'll post a link to it.

cheers,

Donna

[donna]

Hi All,

Here is a link to the video - https://www.gra.co.nz/seminar-record...update-webinar

It does have quite a bit of interesting info on changing structures - and it's not just for Trusts.

cheers,

Donna