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House under a company name moved to family trust- question about tax
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?
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
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Ross Barnett - Property Accountant
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