Tax Insider Tip: Incorporation of a Property Business - The $64,000 question
We’re now into year two of the four-year plan to reduce the amount of interest residential landlords can claim on their property lettings business. This phased approach is leading to higher taxes for landlords each year.
As momentum for incorporating a property business continues, a fundamental question that needs asking is whether the lettings business being incorporated is actually a 'business'?
Getting a positive answer can create a very favourable tax situation but, as with most cases when it comes to tax planning, it is not a straightforward one to answer.
In the July issue of Property Tax Insider, Alan Pink looks at the all-important definition of ‘business’ in relation to the incorporation of a property portfolio in a limited company.
He looks at some of the obstacles one faces and how to manoeuvre around them.
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>> Incorporation of a Property Business: The $64,000 Question
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