That's a good question. (See this article if you’re wondering what an LTC is)
IRD says yes, under certain circumstances (NB: this is not the only way to get into rental investment property. Contact us for advice). Anyway, IRD recently wrote in TIB Vol. 24 No. 7:
Key points to note are
1. The home must be rented “at arm’s length.” It means that each party to a transaction is independent and on an equal footing, despite any family relationship.
2. The sale is at market value. There should be no “mate’s rates” here. (If you are renting to a family member, contact us for advice on best practice)
Questions? Contact us at EpsomTax.com or on 0800 890 132.
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