LAQC Election

[FrozenWaves]

I have a question about electing to become an LAQC.

I have incorperated my company and want to elect to become an LAQC. But when doing so on the IRD election form, it asks me is I want to elect to become:

1.) a Loss Attributing Qualifying Company
2.) a Qualifying Company
3.) Both

I have read somewhere that electing to become ‘BOTH’ is the best way for investment property but cant find any reasoning as to why to do this.

Can someone please tell me the advantages of choosing electing to become 'BOTH" over just becoming an "LAQC' Please?


Cheers

[CJ]

You cant just be a LAQC.

To be an LAQC, you must first be a QC.

If you are already a QC, then you just have to elect to be a LAQC.

If you are not a QC, then you need to elect to be both.

The both option just enables you to do both at the same time.

[the form is confusing - surely buy electing to be a LAQC, you are also electing to be a QC if you are not already but the IRD is sticking to the strict legal approach that to be a LAQC, you must also be a QC.]

[FrozenWaves]

Thanks for clearing that up for me CJ,
yes it is a bit confusing.
So i will need to fill out all 3 parts of the IRD Election form as i am not a qualifying company yet.

Cheers