I entered into a JV (one of 8 units) in WA in 2011 which is about to settle.
What was initially going to be a positive cashflow / equity development in within 12 months has gone south due to the project length (over 2 years).
This has severely affected my cash flow so do not want the losses to be locked in a company structure.
My problem – transfer documents were completed in the company name.
It has not settled yet (very close) so was wondering if I transfer the property into my name what value will the transfer be based on? The land value or current building value?
BTW I have kicked off legal advice, just interested in thoughts out there.
Thanks
You really need to engage an experienced accountant – lot of considerations other than just transfer of income.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Generally speaking a company can carry forward tax losses individuals can't.Get some advice in this area to clarify.
It will probably be transferred at market value as on the date of transfer – stamp duty by transferee and tax by the company payable too. But it is not so simple as you would also own shares in the company and these may need to be transferred as well. Any guaraantees provided on the loans? Directorships?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry. No guarantees but 2 x directorships
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