Buying property using funds from my Limited Company

garysharpe

Hi All,

I am interested in buying an investment property using the funds I have accumulated in my Contractor Company.

I am afraid Revenue would conduct an audit on my contractor Company if I buy the property on my Company name as they would request how I have accumulated the funds (despite all should be OK in the end).

To avoid that I plan to set up a new Company that would receive the funds from my other Company so Revenue will see a fresh company purchasing the property, not an active Company. What is your advice on this? Does it worth to do what I am doing or Revenue doesn't usually request information to the solicitor when doing the transaction.

Many thanks for the help!

Gary

duffysfarm

What does your accountant think?

Bobby1984

Specific structures need to be in place when lending from one company to another. It seems to be an unnecessary step to set up a new company if everything is on in your current one.

Have you thought about your current company contributing to your pension and buying it through that (in your own name and not in the company name)?

paul71

You need to think a lot deeper about this and get some real tax advice.

Why are you putting a property into the ownership of a company?

How do you plan on getting proceeds on the income from the property out of the Company, and what are the tax implications of that?

What is your plan when it comes time to sell the property? How do you get the proceeds of the sale out of the company, and what are the tax implications there?

garysharpe

Hi Paul,

Sorry for the late reply. The funds are in the Company so if I use the funds needs to be from the Company.

Hi Bobby,

To do that I need to wait years to buy the property and I want to invest in property now.

Many thanks,

Alan_007_

Your company sounds like it's done quite well to be able to have funds on hand to purchase an investment property.

I can imagine you didn't get to this position by working for free?

Mellor

https://www.boards.ie/discussion/comment/123115388#Comment_123115388

I think you misunderstood the part about the pension. The company would contribute to a self managed pension fund, and then that fund would buy the property now.

But im not sure why you are overcomplicating it. why don't you just purchase the property. Why the borrowing between companies?

I am afraid Revenue would conduct an audit on my contractor Company if I buy the property on my Company name 

Why would they conduct an audit? Why the that an issue?

garysharpe

Hi Mellor,

There is a lot of funds in the Company as I avail the SURE refund. Now after 6 years if I buy property using those funds Revenue might query (or might not).

Hi Alan,

I didnt extract any funds from the Company as yet as I was receiving salary from a different employer so didnt need to..

Many thanks for the advices!