Incorporating property business with different legal owners?Make Text Bigger
I have a portfolio of about 25 properties and having spoken to Mark Alexander I have decided to shortly contact Mark Smith to arrange for him to prepare all the relevant paperwork re incorporating my property rental business by way of beneficial declaration of trust – One point that I and for that fact my Accountant is unable to advise me on is I have a property with a 3rd party
The 3rd party is a silent partner and has had no involvement with the property for over 10 years. He is happy to enter into a Declaration Of Trust transferring ALL the beneficial interest in the property over to me I don’t want to refinance the property for tax purposes and the lender won’t remove him from the deeds as a legal owner- I dont see why I cant add this property to my portfolio before the incorporation .
There is a very substantial CGT bill to pay if it was sold now- This would be in effect a double transfer of the beneficial interest first to me and then to the Company- I cant see that the legal interest of the properties need to only be in the names of the owners doing the incorporation.
It is still a property which beneficially I will wholly own so I don’t see why I cant then transfer it to a Company. Has anybody had any experience of this or have any ideas as to whether this is possible to do.
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