There are various ownership structures that a taxpayer can use to hold rental properties, undertake property development, property investment or any other business activities. These include:
- Sole/direct ownership,
- Companies, including look through company,
- Joint ventures,
- Partnerships, including limited partnerships, and
To determine the most tax efficient and suitable tax structure, background facts, short- and long- term business plans and personal plans of the taxpayer should be considered.
We understand, lawyers and accountants may have different objectives and intentions when determining the appropriate structure for the taxpayer. For instance, lawyers may aim to maximise asset protection and estate planning, whereas accountants may aim to maximise tax efficiencies in a structure. At NZ Tax Prop, we will consider the appropriate structure for you with your lawyer or our recommended lawyers to ensure all objectives are met!