SearchCan I rent my property from my LAQC?
Grace asks:
(updated on Thursday, January 29th 2009)
Our Experts Answer:
There has been a lot of publicity about this in recent times, suffice to say that what you propose is considered tax avoidance by IRD, so the short answer is no. It is tax avoidance to put in place a structure primarily to get a tax benefit, which is what this arrangement would do. In other words, if you weren't going to get a tax benefit, would you still put this arrangement in place, and the answer to that, I would expect to be no. So, put this arrangement in place at your own peril.Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.
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