The END of LAQCs – Your 4 Options (MP3 files)
Mark Withers
A VITAL update for owners of Loss Attributing Qualifying Companies.
Changes in the law present a minefield for the unwary or inactive investor.
Anyone who owns property through a Loss Attributing Qualiftying Company (LAQC) faces some important and far-reaching decisions, following the government’s decision to axe LAQCs.
This 45 minute Audio programme gives you a lot of straight information you NEED to consider.
It’s a conversation between specialist property tax accountant Mark Withers, partner in Withers Tsang & Co Chartered Accountants, author of Property Tax – A New Zealand Investor’s Guide, and Peter Aranyi from Empower Education.
In this straightforward and accessible interview, Mark answers all the questions Peter raises about options investors have and the decisions you face with your LAQC. It’s an easy 45 minute walk through on ’the plusses and minuses’ of the options available for your LAQC -- now and looking forward.
As Mark said in a recent client newsletter:
"The changes really are monumental and there is no one size fits all solution. The deadlines are also looming. The new law comes in on 1 April 2011 with all elections needing to be filed within 6 months of this date. But don’t be fooled, if you want to alter your shareholding ratio, say for example if your LAQC is now profitable without depreciation and the high income earner owns the majority of the shares, you will need to action this change before the new law takes effect on 1 April 2011."
What’s covered: (The CD is divided into 48 tracks so you can easily find your way to a section of interest or that you need to listen to again to understand.)
- Background: Why the focus on LAQCs
- See the changes in the context of removal of depreciation allowance
- ICNAZ comments
- What broadly, are the changes?
- The default option - QC status but no losses
- Is that a good option?
- The second option is ...?
- The Look Through Company (LTC) - a new beast, just invented (oh joy!)
- Transition to ’Look Through’ status
- Is it like a Corporate Trustee?
- Differences between LAQC and LTC
- No restriction on foreign sourced income
- LTC distribution to trusts can ne held
- Elections with LTC different to LAQC
- Complicated - on purpose?
- Loss of status = two year stand down!
- How does loss limitation work?
- Formulas for calculating loss limitation and ’owner’s base’
- Tax practitioner will have to ’track the base’
- Owners working in LTC - big changes
- Other options besides 1 & 2
- Limited liability co. has advantages
- Transition to trust?
- What’s the tipping point between co. & trust?
- A sale of shares in Co = deemed disposal of asset
- What are the deadlines and timeframes on LTCs?
- What deadlines on the other options?
- Why the rush?
- Losing Look Through status - BIG implications
- Triggering depreciation clawback
- How should people proceed?
- A staged process
- Current market makes landlord profits more likely
- Your old shareholding ratios may be EXACTLY wrong now
- A caveat: How IRD may regard shareholder tweaks
- Need for: valuations, matrimonial advice
- Bottom line advice from Mark Withers
2x MP3 Audio files $49.95 Electronic delivery (Tax deductible? I should jolly well think so!)
