Comments for TalkTax

Comment on International Charities’ help required by Byron

Byron — Wed, 16 May 2012 06:03:11 +0000

I thank you for your very informative post, It is one that I wished I found four months ago. However are you able to please inform us in the application process for Schedule 32 application.

Thank you

Comment on LTC loss limitation rule explained – ‘Owner’s shareholding’ versus ‘owner’s effective interest’ by Jerry

Jerry — Mon, 30 Apr 2012 05:19:37 +0000

I have a couple of quetsion on the following LTC with rental activity:

Market value of rental proerty at purchaes: $462,000
Book value as at 01/04/2011: $420,000
Loan amount as at 01/04/2011: $450,000
Total amount (loan+overdraft) for LTC to access (shareholders guaranteed): $600,000
rental income: $25,000
Expenses: $35,000

(1) How do we calculate owners’s basis?
(2) My wife & I both are guarantors of the laon/overdraft, does this mean each of us only has an effective interest of 50%, irrespective of our shareholding?
(3) In case we’re disadvantaged by the ‘loss-limitation rules’, can we elect to change from LTC to partnership, where our shareholding effectively reflects our effective interest?

Your explaination by this exampl,e is appreciated thank you.

Jerry

Comment on LTC loss limitation rule explained – ‘Owner’s shareholding’ versus ‘owner’s effective interest’ by Aaron

Aaron — Sun, 22 Apr 2012 19:31:23 +0000

Hi Daniel, very interesting area this. im currently doing a masters and have been doing similar research. If you dont mind, there are a few questions that it would be great to hear your views on:

Matriomonial property
for the purposes of counting owners basis, this seems to throw up a few problems. Is the value of the recourse property split 50-50 for a husband and wife who have given an equal guarantee? Even though the shareholding may be say 90/10.

Joint bank accounts
when a husband and wife pay expenses from a joint bank account, does this mean their owners basis increases equally, or is it then apportioned as per the shareholding?

thanks daniel! always enjoy your writings on here.

Comment on Residential Care Subsidy – Means Assessment and Gifted Assets by Anne

Anne — Fri, 13 Apr 2012 22:53:15 +0000

Asuming that parent is on full govt subsidy and legal amount of money still left in accounts. What about money left not in a trust when a parent given children POA. Is there a $ limit to what can be given to rest of family by said children? People talk about gifting but not in a trust so does not apply?

Comment on LTC loss limitation rule explained – ‘Owner’s shareholding’ versus ‘owner’s effective interest’ by andy

andy — Wed, 11 Apr 2012 21:39:09 +0000

With a LTC, say you make a loss of $100,000 in a calender year , how much of this loss can you claim back against your own personal income if you are a 33% tax payer? The LTC is a single rental property and each of the two of us are 50/50 owners but one of us is on a years maternity leave.

Comment on LTC loss limitation rule explained – ‘Owner’s shareholding’ versus ‘owner’s effective interest’ by steve

steve — Wed, 04 Apr 2012 03:07:00 +0000

In the 2012 IR7 Guide , IRD give a loss limitation example
that turns a LTC loss into possitive assessable income amount to the owners, as a result of applying the “loss” limitation rule not to the loss, but to the deductions amount only.
I can’t get my head around it
refer page 25

Comment on LTC loss limitation rule explained – ‘Owner’s shareholding’ versus ‘owner’s effective interest’ by viny

viny — Mon, 02 Apr 2012 22:39:06 +0000

spouse wants 50/50 shareholding. A friend said it is not as simple as just going into website and changing shareholding, the shares have to be valued and correct paperwork needs to be done, she may need to pay me for the extra shares etc This seems too complicated. If this is the case what journals and paperwork do we have to do?

Comment on Law Society comments on Newmarket Trustees by When corporate trustees go bad « Matters of Trust

When corporate trustees go bad « Matters of Trust — Fri, 23 Mar 2012 00:57:38 +0000

[...] http://www.talktax.co.nz/index.php/2011/09/07/law-society-comments-on-newmarket-trustees/ Share this:TwitterFacebookLike this:LikeBe the first to like this post. « Removal of trustees [...]

Comment on The perfect gift after 125 years by Mary

Mary — Mon, 27 Feb 2012 18:00:54 +0000

With the abolishment of gift duty/tax, doesn’t this leave it wide open for these scammers, who coerce/extort monetary gifts (and being left part or whole estates) to get away with what is definitely morally wrong, even perhaps legally wrong? ie a “caregiver” who can talk an elderly gentleman into “gifting” $70,000 in one sum, because she feeds him a story of woe and hardship. This change seems to me to leave the door wide open for these type of people to repeat their actions time and time again with our vulnerable elderly. How can they be stopped?

Comment on Residential Care Subsidy – Means Assessment and Gifted Assets by Simon G

Simon G — Wed, 01 Feb 2012 20:28:28 +0000

Both of my parents are in residential care which is being paid for by their residential care loan.

In the first year they were in the rest home my brother in-law moved into the family home to look after it and do some minor maintenance. (it was in quite a state). No rent was paid. For the past 12mths I have lived in the home with my family and we have rennovated the interior ourselves. Again, no rent was paid. And now I have a brother returning from the UK who will also occupy once we leave…again at no charge.

The question is: is there any obligation for my parents to charge rent on the family home. If they don’t does it constitute income deprivation? They will reach the asset threshold for the residential care subsidy in a couple of years and I don’t want any surprises along the lines of ‘…you should have been receiving rental income..’

Thanks.