Can our company directly pay our Mortgage payments?

[stevy777]

I'm wondering can our company, own the house we live in and pay directly the mortgage payments? Note i'm a resident of the place the company is incorporated.

This would be useful , instead of distributing the money to me that i have to pay tax on, if the company pays the mortgage it's paying with tax free money.

Is this possible?

 

[Dandyline]

If the company owns the house, it can and should of course pay the mortgage.

You need to pay rent to your company in order to live in the house though, the rent should be in line with the current market price.

 

[stevy777]

Dandyline said:
If the company owns the house, it can and should of course pay the mortgage.

You need to pay rent to your company in order to live in the house though, the rent should be in line with the current market price.
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As long as the company gives me money to pay the rent ”¦

makes me wonder about a car the company is paying the loan for .. I have to pay the company too then ?

does having a house / car owned by the company (who pays the mortgage or loan) practically work for anyone ?

 

[Dandyline]

stevy777 said:
As long as the company gives me money to pay the rent ”¦

makes me wonder about a car the company is paying the loan for .. I have to pay the company too then ?

does having a house / car owned by the company (who pays the mortgage or loan) practically work for anyone ?
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it all depends in which country the company are incorporated in, different laws... You need to pay some kind of tax for using the companys car for non business related driving. And you need to rent the house and pay rent to your company with taxed money.

 

[uplana]

Dandyline said:
You need to pay rent to your company in order to live in the house though, the rent should be in line with the current market price.
Click to expand...

have done it like this with one of my larger companies for a few years already, works fine.

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[stevy777]

uplana said:
have done it like this with one of my larger companies for a few years already, works fine.
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That's good to know

could I please ask - what advantage is it to you, for your company to pay the mortgage ?

 

[JustAnotherNomad]

A simpler way would probably be for the company to just pay you some rent.

 

[stevy777]

JustAnotherNomad said:
A simpler way would probably be for the company to just pay you some rent.
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It's a good shout

how does a company pay me rent ? Would it just be for the office ?

 

[JustAnotherNomad]

Yes, the company could rent an office from you. Be aware of the tax risk though - your company having an office there could trigger a tax liability for the company, at least in theory.
Then again, if your company just pays for your mortgage, that's clearly a tax risk, too, both on the company and personal level.

 

[Martin Everson]

Dandyline said:
it all depends in which country the company are incorporated in, different laws...
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This is most important factor thu&¤#

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.