Hi,
Currently building a new home in AKL which will become our new Family home. Once build is complete, we will transfer ownership of our current home (which we have owned and lived in for 9 years) into a LTC (yet to be set up) and rented out.
1.) In the event that our "old" home is sold in under 2 years, will the brightline test capital gains tax apply?
2.) If it is sold anytime in the distant future (2 years +) will capital gains tax be payable?
(I was thinking yes) am I correct?
Is this the best way to set up an ex Family home into an investment property?
I pay a significant amount of income tax per year and am keen to claw some back.
or should I just sell the "old" home and look elsewhere for a better rental,
gross rental yield would only be circa 3.9% on the value of the home.
Currently building a new home in AKL which will become our new Family home. Once build is complete, we will transfer ownership of our current home (which we have owned and lived in for 9 years) into a LTC (yet to be set up) and rented out.
1.) In the event that our "old" home is sold in under 2 years, will the brightline test capital gains tax apply?
2.) If it is sold anytime in the distant future (2 years +) will capital gains tax be payable?
(I was thinking yes) am I correct?
Is this the best way to set up an ex Family home into an investment property?
I pay a significant amount of income tax per year and am keen to claw some back.
or should I just sell the "old" home and look elsewhere for a better rental,
gross rental yield would only be circa 3.9% on the value of the home.
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