Hi, I have recently purchased half of the Family farm. For accounting/ bookkeeping purpose, is it best to set up a partnership or trust? Open to other suggestions
Hi Tammy, as you are purchasing an ongoing concern, what is the current structure? Surely there is a current accounting setup covering the farm and you would become a 50% shareholder. Would this not have been one of the discussions with your Tax Advisor at time of doing your due dilligence on the purchase.
Or am I misunderstanding the question and its merely about a Real Estate Purchase? In which case is there income to be received or a loan to be paid?
As you can see without a fully detailed question its difficult to answer and give an answer that is relevant.
As stated by the other people if you have purchased it already then you must have a structure already.
Maybe the question be about tenants in common or joint tenancy?
What are you trying to achieve? Do you need to start with that question first before you then choose the vehicle by which to own the asset?
Work out the answer and then pose the question again and maybe we can help.
email me for clarification firstname.lastname@example.org
As has been stated, It seems that you have acquired the real estate in whatever name you have acquired it. It would most likely be too costly to change, and perhaps not even necessary.
If you were to commence a business, then maybe that business could be set up in a separate entity, different from the land owner, and that entity could pay rent to the landlord for the use of the premises.
As to what entity is the most appropriate, he would be dependent upon all of your other personal circumstances.
Good luck with the venture, I hope it goes very well for you.