Investors need to review company structures
That is the advice from property tax expert Mark Withers, of Withers Tsang, who says the changes to the QC and LAQC regimes is the biggest issue currently facing property investors.
"It will touch pretty much the entire property community in one shape or form," he says.
Revenue Minister Peter Dunne put out a release yesterday saying that the draft legislation for the QC and LAQC regime will be released later this week.
It currently looks like investors can either opt to stay in the QC regime and forgo claiming losses within the company, or they can opt into a flow-through entity, which will allow for claiming of losses, but that will tax profits at the shareholder's personal 33% tax rate, as opposed to the company tax rate of 28%.
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