What is an LAQC?

An LAQC is a Loss Attributing Qualifying Company. Most property investors set up one of these companies when buying investment property.

The investment property is purchased in the name of the LAQC and is run just like any other small business. If highly geared it's inevitable the property(s) under the LAQC will make a loss as rental income will be exceeded by rates, interest, depreciation and other expenses.

The key benefit is at the end of the year this loss gets deducted from the shareholders personal taxable income.

If there is more than one shareholder in the LAQC then the shareholding needs to be split in relation to personal income so as to maximise the tax benefits.

Further down the track if the property starts to make a profit (as loan principle may get paid off) the ownership can be transferred to a trust without need to involve a sale and purchase agreement or conveyancing costs.

For any questions please contact us at call 0800 NO STRESS.

Although we can give general advice we do not try to replace a good Accountant who will advise you specifically according to your personal situation.