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Best Ownership Structures for Investment Property

Picture
Garreth Collard: 9 times out of 10 an LTC is the best structure for owning a rental property. Photo / Janna Dixon
This is an excerpt from Diana Clement's regular series in the NZ Herald.*
Ownership of LTCs can be tweaked according to the income and tax rate of the couple or partners involved. Where the property is making a profit, for example, says accountant Garreth Collard, of EpsomTax.com, the majority shareholder of the LTC will be a spouse who is in the lowest tax bracket. This is ideal where that person is on the 17.5 percent tax bracket or lower."

It's a good idea to involve an accountant and lawyer in the setting up the LTC so you don't risk being accused of tax avoidance in the future.
Nine times out of 10, argues Collard, an LTC is the best structure for owning a rental property: "You have the benefit of limited liability, a legal structure that is clearly a separate entity yet under your control, and yet it is treated at tax time like a partnership: the best of both worlds."

Read the complete article here.

Would you like to know about LTCs vs partnerships vs Trusts?
  • Read our article on the pros and cons of the four main types of structures here
  • See also this article on LTCs vs QCs and LAQCs, or
  • This article on the merits of trusts vs LTCs
​Search our site for more information, check out the FAQ page, or simply contact us!

* EpsomTax.com does not claim endorsement by either NZ Herald or Diana Clement. Please see statement below regarding trademarks and rights.
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  • HOME
  • ABOUT
    • IN THE NEWS >
      • OWNERSHIP STRUCTURES
      • TURNING SKILLS INTO MONEY AND A BETTER LIFESTYLE
    • PARTNERS
    • SERVICES
    • TESTIMONIALS
    • WHY USE A PROPERTY ACCOUNTANT
  • FAQ
    • AML/CFT
    • ANTI-CORRUPTION
    • AUDIT SHIELD
    • DATA PRIVACY
    • FORMS
    • GETTING STARTED IN INVESTMENT PROPERTY
    • HOW TO CALCULATE RENTAL YIELD
    • INFO FOR NEW INVESTORS
    • INVOICES
    • NEW VS OLD VS LAND&BUILD
    • TAX RETURN FAQ
    • TAX POOLING
  • CONTACT
  • BLOG