I've done the GRA recommended RESTRUCTURING and now have the family home in a Family Trust, and 2 IPs in a Company (not a LAQC as I have another company for my 'everyday' business that I can access any property losses through).
I want to subdivide the family home property, build on the back, and hold and rent out the new house (in Christchurch).
How should I best structure this development / what vehicle should I do it under to:
1. Avoid tainting my IP Company as a developer
2. Be able to hold the new property long term
3. Separate the new property from the Family Trust
4. Maximise my profit
5. Keep everything smelling of roses as far as the IRD is concerned
Do I need to set up a Trading Trust to do the development?
I read recently that if your INTENTION at the outset is to 'build and hold as a long term investment' then you are not considered to be a developer. If that is true then could the development be done within the IP company without detriment?
I'd appreciate any feedback as I don't want to reinvent the wheel.
Cheers
Hammond
I want to subdivide the family home property, build on the back, and hold and rent out the new house (in Christchurch).
How should I best structure this development / what vehicle should I do it under to:
1. Avoid tainting my IP Company as a developer
2. Be able to hold the new property long term
3. Separate the new property from the Family Trust
4. Maximise my profit
5. Keep everything smelling of roses as far as the IRD is concerned
Do I need to set up a Trading Trust to do the development?
I read recently that if your INTENTION at the outset is to 'build and hold as a long term investment' then you are not considered to be a developer. If that is true then could the development be done within the IP company without detriment?
I'd appreciate any feedback as I don't want to reinvent the wheel.
Cheers
Hammond
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