Ask Nick Ashford of Withers Tsang & Co questions relating to Tax and Asset Structures
Nick Ashford and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
Our rental properties are in a look through company (LTC) company where my husband has 99% shares and I have 1% share holding. This is so we can write off any losses against my husband's income as he is the top wage earner.
However, my husband may stop working soon. This would make me the only income earner so it makes sense to for us to change the shares to me 99% and my husband to 1% . Can this be done ? Are there tax penalties for doing this ?
We are building a tree-house and are thinking of offering this as a room on Airbnb. We will also stay in the tree-house from time to time. Does this dual use of the tree-house make it a mixed use asset, with relevant tax rules ?
I only want to rent the accommodation out to make enough money to cover my gardening expenses and perhaps a bit more. We have a large garden which costs about $6000 per annum to maintain and I feel that a well maintained garden is an integral part of the Airbnb.
I phoned Inland Revenue asking about B&B accommodation and they advised that they think any gardening expense would be tax deductible for B&B accommodation, but that I would need to apply for a ruling on it. Somehow their answer doesn't sound right to me as the garden will be shared use between our family and the guests.
My 19 year old University student daughter is buying a property and plans to rent out the second bedroom, I have read that if she does this she doesn't have to pay tax if the person pays less than $254 per week. We anticipate the rent for the second bedroom to be $230. Does this also apply if her trust buys the property for her - ie: the property is in her trust's name?