LTC vs Partnership and ditching the accountant

[sjkpark]

Hi,

I have a PI in Auckland which was set up as LAQC. It is currently making a loss and will continue to do so, as I am going to buy a PPOR with my current saving when the time is right.

I've been reading about LTC vs Partnership and will probably go LTC way. Just want to clarify though, so the only difference between LTC and Partnership is that LTC is a limited liability, or am I missing something major?

Also, I have given up on a major commitment to give myself some breather, so I would like to do the accounting myself for this coming tax year as I indicated in the previous post. What's the most civil way of ditching the accountant?

Thanks

[Rosco]

Another difference is that with LTC you can probably still move the shareholding around to some degree. There are the deemed sale rules to be aware of. So losses to higher income earner, and then when come becomes profitable (or depreciation recovery from sale) can move some shares and therefore some profit to low income earner or Trust.

If you currently have an LAQC, you would need to sell to p/ship, so will incur legal costs.

Ross

[Fuzzywuzzy]

I have an LAQC and need to visit the legal experts before March is up. I was thinking that an LTC was the only alternative?

[lissie]

Just talked to my accountant about the same decision - I presume the company will make a profit at some point (otherwise what's the point?) with an LTC you can retain profits in the company and pay the co tax rate.

If you go for a partnership you will have to sell the propety and wind up the company - you can't fire the accountant yet!

[CJ]

If you go for a partnership you will have to sell the propety and wind up the company - you can't fire the accountant yet!

And if you go the partnership route, you will need to hire a lawyer as well!

[sjkpark]

I'll probably go LTC route. I don't think the property will become profitable anytime soon. Can I ditch the accountant now?

[CJ]

I'll probably go LTC route. I don't think the property will become profitable anytime soon. Can I ditch the accountant now?

you can ditch the accountant whenever you want. the question is, do you know enough to get it right?

Maybe get a high level review by your accountant for the first year to ensure you have done it correctly. Especially since this is a period of change (ie. LAQC -> LTC)