Nominations and Share Transfer

25 March 2021 by Ross Barnett

Nominations and Share Transfer

Following the government announcements - urgent action maybe required if you are;
- Restructure (in last email and see below)
- New property purchase and plan to nominate (for example to LTC)
- Share Transfers

This information is for residential long term hold rentals only, and not for commercial or trading properties.  

Video with examples of changes over 10 years https://youtu.be/mnxGyDi0EJE


Nominations 

If you have signed a sale and purchase agreement to buy a property in one entity (for example) your personal name, but you plan to set up a Trust or LTC and nominate this entity to be the purchaser.  The new entity will settle on the property 27/3 or after.

IMPORTANT that the nomination is completed 26/3/21 or earlier.

For example, I sign a sale and purchase on 1/3/21 under my personal name, Ross Barnett and /or nominee.
Settlement is not until 25/5/21 and I plan to nominate a new LTC, Great Property Ltd.

1) If nomination done on 26/3/21 or before, then 5 year brightline and existing property interest deductions apply (still slowly phased out over 4 years)

2)  If nomination done on 27/3/21 or after, then 10 year brightline and no interest deductions from 1/10/21

Share transfers

Always get me to check any share transfers before you do them.  There are a lot of catches and a share transfer can have serious tax implications


Restructure - repeat of email a day or two ago

If you have have been talking to me about a restructure, and have one coming up around 1/4/21 (normal date used to align with financial year), then please send me a quick email so that I can ensure we can review your case.  Even if we were thinking about doing the restructure later, it will be worth sending me a quick email to ensure your not missed somehow.

If this is you, I will be trying to ring you today or tomorrow as we might need to make changes very quickly.

Email ross.barnett@lifetime.co.nz

What is a restructure?  Normally it is selling a current personal house to a new entity, or transferring a property into a new entity.  This is often done to improve interest deductions, so is effected by the new rules.


Everyone else - DON'T PANIC

The new changes will have an effect but are unlikely to be a reason to sell good investment properties.  We will be in touch in the next couple of days with an update.  Make sure you read my last blog with an example of how the change might work.

 

Thanks

Ross Barnett

preview image - Lifetime Announces New CEO - Andrew Logan

Lifetime Announces New CEO - Andrew Logan

We are thrilled to announce that Andrew Logan has joined Lifetime's Senior Leadership Team as our new Chief Executive Officer (CEO). Reporting directly to Peter Cave, who remains our Managing Director, Andrew brings over 20 years of rich experience in financial services, encompassing national advisory roles, management, and business development across banking and insurance sectors.

13 June 2024 by Lifetime
preview image - Understanding Income Protection Insurance and Tax Deductions

Understanding Income Protection Insurance and Tax Deductions

Whether you're a business owner or earning a salary, income protection insurance can offer valuable financial security in uncertain times. But did you know that you may also be able to claim the cost of your income protection insurance as a tax deduction?

30 May 2024 by Lifetime in Accounting, Insurance