LAQC’s cease from 1/4/11
Look Through Companies (LTC) start from 1/4/11 and many investors will be changing over to these.
If you have not been to a property accountant seminar on LTC's or meet with a property accountant, I suggest you organize a meeting with them before 31/3/11 as there are situations where action is needed before 31/3/11. Your property accountant will most likely charge you for this time.
If you are unable to meet with one, another option is to email or ring your property accountant. Just be aware there will still be a cost to this in most cases.
Some examples of situations where a change pre 31/3/11 might be worthwhile
- Properties generating taxable profit (excluding building depreciation)
- Looking at selling investment properties
- Received inheritance or other money that will be used to reduce rental losses
- Worried about asset protection
- Large shareholder current account
- Looking at personal home becoming a rental, and buying new personal home
- Anything that will reduce the expenses claimable in the LAQC (such as debt being paid down, significant rental increases etc
In most cases the property accountant needs to know your circumstances and can’t recommend the best way forward without speaking with you or meeting with you.
The reason why I recommend using a property accountant, is that most accountants don't specialise in this area. They may know a little bit about the changes, but most likely have just been to a course/seminar in February or March, so have only been thinking about this issue for a month or less.
Whereas property accountants have been watching the changes for a long time, and would have considered a lot more of the options and possibilities to use the changes to our clients advantage.
Ross
Look Through Companies (LTC) start from 1/4/11 and many investors will be changing over to these.
If you have not been to a property accountant seminar on LTC's or meet with a property accountant, I suggest you organize a meeting with them before 31/3/11 as there are situations where action is needed before 31/3/11. Your property accountant will most likely charge you for this time.
If you are unable to meet with one, another option is to email or ring your property accountant. Just be aware there will still be a cost to this in most cases.
Some examples of situations where a change pre 31/3/11 might be worthwhile
- Properties generating taxable profit (excluding building depreciation)
- Looking at selling investment properties
- Received inheritance or other money that will be used to reduce rental losses
- Worried about asset protection
- Large shareholder current account
- Looking at personal home becoming a rental, and buying new personal home
- Anything that will reduce the expenses claimable in the LAQC (such as debt being paid down, significant rental increases etc
In most cases the property accountant needs to know your circumstances and can’t recommend the best way forward without speaking with you or meeting with you.
The reason why I recommend using a property accountant, is that most accountants don't specialise in this area. They may know a little bit about the changes, but most likely have just been to a course/seminar in February or March, so have only been thinking about this issue for a month or less.
Whereas property accountants have been watching the changes for a long time, and would have considered a lot more of the options and possibilities to use the changes to our clients advantage.
Ross
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