SearchWill selling to my LAQC trigger tax issues?
Ron asks:
(updated on Tuesday, February 01st 2011)
Our Experts Answer:
Yes, the sale of the property to the LAQC will trigger tax issues associated with its disposal in your tax return. This will include a depreciation recovery assuming the market value disposal of the building is in excess of its depreciated book value. Note that because the transfer is between associated parties depreciation in the new company is limited to the same rate and cost base that was used by you as an individual.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
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