:: Personal (either Partnership or Sole Trader status)
The simplest form of ownership chosen by many first time investors. You personally own the property and provide the direct link between ownership, tenant and lender.
Any Tax losses are directly attributed to the owners/
landlords. Partnerships must split the losses accordingly.
:: Limited Liability Company
A separate entity or “Artificial Person” in law.
This vehicle of ownership can be more effective in the
distribution of any Tax Losses. Where there are 2 or more share holders, the proportion of shareholding can be adjusted so that the maximum proportion of losses can be attributed to the largest income earner.
Please note that the company must have LAQC (Loss Attributing Qualifying Company) status to attribute any Tax Losses to the shareholders.
You MUST obtain LAQC status within the first financial year of trading to be able to successfully transfer any tax losses into your personal name as a shareholder.
