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A Company is a commonly used method of retaining your existing home as a new Investment Property. Please contact Finlay for more information.
Where there is more than one shareholder, using a Company can also deal with any subsequent changes in ownership of your Investment Property without the potential ramifications of a change of ownership on the Certificate of Title.
The current company tax rate is 28 % for Taxable Profits generated by the Company as opposed to the top personal tax rate of 33 %.
Please note – Personal Income Tax rates apply to Tax Losses which are distributed to the shareholders. |
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Using a company can provide a layer of protection between landlord and other parties, i.e. you are not personally responsible, the company is. Therefore in the event of litigation against the company (as Landlord and/or Business Owner), the key asset at risk is usually the equity in the Company.
Please note - there is no additional protection with the lender though as they will generally take your personal guarantee.
For more information about Companies please visit
www.companies.govt.nz |
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