Hi
I bought a home 4 years ago for $280k with an interest only loan and put it into my family trust (my hubbie and I are settlors, trustees and beneficiaries). It's currently worth about $380k & we have spent about $25k on improvements to it. My trust has been renting it to my GST registered company (which is jointly owned with hubbie) at market rates.
If I get either a registered valuation or real estate agent assessment could I sell my home to my company, claim GST back on the value and use the refund to either do up the house or invest in a separate rental property. We are also considering renting or selling our home to move to a better school zoned area.
My accountant says there is no problem but she doesn't have her own trust nor does she have rental properties. She has told me that we would have to pay GST when I sell the property.
I know the IRD has been paying attention to property transactions at the moment so I'm a bit nervous about this.
I'd really appreciate your feedback. Thanks.
Mags
I bought a home 4 years ago for $280k with an interest only loan and put it into my family trust (my hubbie and I are settlors, trustees and beneficiaries). It's currently worth about $380k & we have spent about $25k on improvements to it. My trust has been renting it to my GST registered company (which is jointly owned with hubbie) at market rates.
If I get either a registered valuation or real estate agent assessment could I sell my home to my company, claim GST back on the value and use the refund to either do up the house or invest in a separate rental property. We are also considering renting or selling our home to move to a better school zoned area.
My accountant says there is no problem but she doesn't have her own trust nor does she have rental properties. She has told me that we would have to pay GST when I sell the property.
I know the IRD has been paying attention to property transactions at the moment so I'm a bit nervous about this.
I'd really appreciate your feedback. Thanks.
Mags
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