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  1. #1

    Default Winding up an LTC?

    I'll be setting up an LTC in a couple of months and selling my current residence to it to get the maximum tax benefits when I rent it out.

    I understand how any income/loss flow to me personally.

    I can't find information on what happens down the road when I eventually sell my rental property.

    Is that money then distributed to me as a dividend (after paying back any balance in my current account)?

    Does the LTC then have to be wound up? What does that involve?

    Thanks!

  2. #2
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,604

    Default

    Hi Coolbananas,

    I would always suggest you get full advice on your structure and how it works for you.

    - Capital gain is simple to get out to shareholders in an LTC. This is a big advantage over a normal company, where they can be very hard to get out.
    - There are different ways to wind up an LTC depending on the risk. Can get a liquidation which costs around $3,000, or remove from the register for around $1,000. But often if the capital gains have been distributed already and nothing is left in the company, the company can just do nothing, and after a year or two the companies office remove it for free.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  3. #3

    Default

    Thanks, Ross!


 

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