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  1. #1

    Default House under a company name moved to family trust- question about tax

    We bought a house under a limited company name but we had to move in and are going to transfer it to the family trust. What do we have to do in order to avoid being taxed if we sell it in the future?

    Thank you

  2. #2
    Join Date
    May 2007
    Location
    Hamilton
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    Default

    As with many answers it depends.

    For example if purchased as a trade, then your Trust is associated to the Company, so any gains in the future are taxable.
    Or if you purchased after new Bright line test in Company, then Company would have sold within 2 years, so gains would be taxable

    Whoever is helping or advising you with your transfer (your accountant and lawyer) can best advise you on this! If you haven't got advice, you should!

    General advice with transfers like this - will need to be at fair market value, so you will need some kind of valuation to prove the value. If the company has made a capital gain, you will need to think how to get this out of the company. Again get good advice!

    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.


 

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