Process to close LAQC due to separation of partners
Question from Tawehi updated on 18th November 2010:
Due to our circumstances changing, what do my wife and I need to do to wind-up the LAQC that we currently have? There is one property in the LAQC and the property is currently tenanted. Share in the LAQC is 95%-me and 5%-wife. The LAQC currently has a mortagage which is $180k and The last RV was $185k. We currently receive $265 per week. The property was purchased by the LAQC in April 2007. Depreciation was claimed 2007-2008 and 2008-2009.
Our expert Mark Withers responded:
The company can't be wound up while it is still trading. The property will need to be sold or transfered out of the company at market value. A final tax return will need to be filed dealing with depreciation recovery and the distribution of any proceeds from the sale. There is then a formal procedure to follow to do a voluntary solvent liquidation of the company that includes gaining consent from IRD for it to be liquidated.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
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