Trying to find the correct way to do this.
Looking to do some property flipping next year in a Trading Trust, Reg. for GST.
Currently the Rental Trust has a Revolving Credit account with a line of credit to it.
Its these funds that I want to use for the flipping business.
Want to do it correctly with the most simple accounting process i can use.
What is best way to do it.
I can see a few options:
1. Moving Funds (lending funds):
From the Rental Trust bank account to a trading trust bank account.
Problem is messy and various amounts going back and forth.
Could have cash sitting in Rental Trust earning interest, while being charged interest in rental trust.
Not ideal at all.
2. Bank provides a seperate line of credit - to the Trading Trust, instead of the Rental trust.
Interest is then charged to the correct entity.
No cash on hand sitting around.
Is their a problem for the bank to set it up this way normally.
Problem is, having to change the limits on both RC accounts, if I need them changed.
Looking to do some property flipping next year in a Trading Trust, Reg. for GST.
Currently the Rental Trust has a Revolving Credit account with a line of credit to it.
Its these funds that I want to use for the flipping business.
Want to do it correctly with the most simple accounting process i can use.
What is best way to do it.
I can see a few options:
1. Moving Funds (lending funds):
From the Rental Trust bank account to a trading trust bank account.
Problem is messy and various amounts going back and forth.
Could have cash sitting in Rental Trust earning interest, while being charged interest in rental trust.
Not ideal at all.
2. Bank provides a seperate line of credit - to the Trading Trust, instead of the Rental trust.
Interest is then charged to the correct entity.
No cash on hand sitting around.
Is their a problem for the bank to set it up this way normally.
Problem is, having to change the limits on both RC accounts, if I need them changed.
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