Structures/accounting advice for ex-pat investors

[ave8ta]

Gidday Gidday,

Can anyone help please?

I've just built a residential rental property in NZ and continue to work and live overseas. Another residential rental property is on its way. My income is taxed overseas and I'm a non-resident for tax purposes in NZ. I've yet to file a tax return for the property(s). Although NZ truly is a great country I'll stay overseas for at least another decade.

Is anyone in a similiar situation? What structure do you hold your properties in and could you please reccomend an accountant with ex-pat experience.

A lone voice in the wind . . .

[donna]

May I suggest you do a word search in the Forum for threads that cover structures and non residence. I recall reading to a few, so no doubt you'll find some interesting responses.

Also in 'reports' in the menu - click thru and then click on 'recommendations' - put in your search criteria and you'll come up with Accountants that our members have recommended.

Cheers,

Donna

[ave8ta]

Thanks Donna.

Have checked the resources as you suggested and have put out feelers towards the accountants the other members recommend.

Although everone's situation is unique I wonder if anyone has definitive solution for the optimal structure for us ex-pats to hold our rental properties in while we continue to live and work off shore . . .

Thanks again.

[roadrunna]

ave8ta,

Which country are you in? As this depends on the best way for you to structure your property.

roadrunna

[ave8ta]

Gidday Gidday roadrunna,

Thanks for coming to the party! The more the merrier.

I'm beavering away here in Japan and am funneling the money back to NZ for investment properties. I'll stay in Japan for another decade. I'm trying to work out what the best structure is to hold the properties in as but can't seem to find a clear answer.

Rather than reinvent the wheel myself I'd like to follow in the footsteps of one who's trode the same path. That wouldn't be you by any chance would it?

BTW - are you part of the http://www.investinnewzealand.co.uk/ group?

[roadrunna]

Hello,

Ok, not completly sure on the rules regarding tax, etc in Japan, so you'll probably need to find this out first I'd say.

As Donna says there are a lot of useful posts on these forums which do go into detail about structures for overseas kiwi's. I've posted a reply to someone elses question about the same thing a few weeks back about it as well.

There is also the factor that each person is in a different circumstance which also makes this question hard to answer and it's probably best to talk to an accountant about it.

This is what I am doing: I have just brought an investment property in Hamilton under my own name. I'm currently tax non-resident for NZ tax purposes so the only thing I am getting taxed on is my NZ income which will be my rental property in NZ. I can also claim depreciation on this every year. So for me, that was the best option.

There are 3 other ways of structuring -

LAQC - Not worth it if your not living and working in NZ.
Ltd Company - Will eventually put my properties into several Ltd Companies, but for now will just keep them in my name.
Trusts - Will also use this eventually, but again, not for now.

When talking to an accountant on the phone about this he thought I should put all my properties under a Ltd company at the start - I'm not sure what his reason was for this, maybe to just sell me his services as he didn't really get into why too much. I'm not convinced it's worth it unless you have about 3-4 properties first.

No I'm not part of the investinnewzealand group, but I do know and talk to the people who run it - they have some very useful information that will no doubt help you in your quest for these answers!

Good Luck!
roadrunna

[ave8ta]

Cheers Roadrunna,

Just what I was looking for.

I've had similiar advice from an accountant as well but like you thought that ownership in my own name appeared to best suit small holdings of a few properties without the need for protection from creditors.

Thanks for the detailed information and all the best with your investing.

[murray-spi-investments]

Roadrunner

I would not suggest holding propeties in a standard limited liability company as you cannot access the tax loss (if any) against you other NZ imcome, assuming you come back one day. Either LAQC, trust or private ownership depending on circumstances is best.

As you say a lot depends on the country you are resident in and if there is a double tax agreemeent with that country and NZ