We currently have a personally owned investment property and an LTC which also owns some. We also have a personal mortgage on our home and all entities have interlocking guarantees for loan purposes. I wanted to simplify our ownership by selling the personally owned IP out into the LTC, then my accountant then brought up that it would be beneficial when selling to sell for a much higher amount (as much as my bank will allow) making the LTC borrow a greater amount and letting us personally profit a lot more from the sale and use the money to pay off our personal mortgage. Essentially this is swapping our non deductable home mortgage for a deductable one in the LTC, making us mortgage free and only a bit negatively geared.
Am i missing something, because this seems too good.
Am i missing something, because this seems too good.
Comment