Also known as: How do you make an LTC election?
It's reasonably straight-forward. Once the company is incorporated (click here if you want us to do this for you), you then complete and send off an IR862:
Section 1 is fairly self-explanatory, although you may come unstuck at the part where it asks you to choose the income year. Accountants always refer to the financial year as the one ending next March. For example, if today is the 31st of March 2015, then we are in the 2015 financial year. However, if today was the 1st of April 2015, then we would be in the 2016 financial year. So make sure you put the right financial year on the form!
In Section 2 you repeat some of the information from Section 1, and then fill in the details of the Owners. The bits you need to fill in are:
then sign and date the form.
Send this to us, or post it directly to:
PO Box 39010
Wellington Mail Centre
Lower Hutt 5045
Make sure you read the instructions on the back, as you can only have a maximum of 5 Owners.
The other thing we'd usually get you to do is complete a resolution, assuming you are purchasing property. Download our sample resolution below for free.
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