As noted from an article in the Weekend Herald. Investors will now seriously need to reassess the structures in which they hold property after the IRD announced they are taking away the favourable tax status for the LAQC. (Loss Attributing Qualifying Companies). Investors should urgently seek the advice of a qualified Accountant and in their interest act sooner rather than later. An alternative could be the LTC (Look Through Company). This structure will pass losses or income to their shareholders which are taxed at the individuals marginal tax rate, but there will be a limitation of loss. LTC owners will not be able to claim losses greater than their equity in the company – which means they can’t be a nominal $1.00 shareholder – but claim considerable losses each year. Other structures could be Family Trusts, Limited Partnership or simply holding the property as a sole trader. Again we can not stress the importance of seeking the appropriate Professional Advice prior to undertaking any changes to your Investment Portfolio to meet your circumstances. If you require any assistance please contact us directly on 0800 2 87878. Happy Investing the Team at Property Conveyancing Services – Connecting People and Property 
Tag: Professional Advice
A lease interest is created when the Lessor grants to another party the Lessee a right of possession of land for a period of time. In effect the Lessess will pay the Lessor a fee for occupation. The terms will be written into a form of a Lease document. The Lease will contain the conditions such as length of time for which the Lease is to run, the property or premises together with right of occupation. The Lease should be registered against the Title. New Zealand contains a lot of Leasehold properties. Here are a few examples of Leases: Commercial Lease, Residential Leases, Leases of Crown Land, Cross Leases or Maori Land. Much care should be taken before purchasing property which is Leasehold. Again homework, research and professional advice should be sought.
