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  1. #21
    Join Date
    Feb 2013
    Posts
    247

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    Quote Originally Posted by Rosco View Post

    BlueSky - your case might be or might not be different. If your LTC will run at a loss after interest charged from Trust, under the expected new rules, the Trust would have to pay tax on the interest earned, whereas you could not use the LTC loss to offset your personal income. So going forward if the LTC is a loss this might not be the best option.


    If your LTC will run at a profit, then why not have it owned by your Trust? Profit then flows to the Trust, also get asset protection by being owned by Trust. And then wouldn't have to charge interest across, as all profit would flow to Trust anyway.

    Ross
    The new rules will be pro rated so by the time it ends I would have it paid back the Trustees.

    Expensive to setup and maintain?
    What will be the yearly cost to manage vs an LTC.

  2. #22
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,307

    Default

    I wouldn't think of an LTC as expensive to setup or maintain
    - As you already have the company and trust, set up is just an election with IRD. Need to check no other items that would catch you out, but should be well under $250

    - maintain - 2018 and going forward owners basis gets a lot easier. Otherwise nothing really extra for LTC, so I would say the same to maintain as your current company

    So LTC owned by Trust, should be same cost as your current Company and Trust.

    There is no perfect structure and it does depend on your situation. I don't know your situation so I can't say whether this is better for you or not, but in my experience it is often easier. Plus heaps easier to get capital gains out of an LTC vs a normal company!

    Ross
    More Profit from Property? Learn How HERE.
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.


 

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