What happens if Winchester ceases activity?
When a property is syndicated, a corporation is formed as bear trustee. This corporation is deemed to be inactive for tax purposes as all income and expenses are attributed to the beneficial owners (the investors). For the reason that this corporation is inactive it cannot be held liable, hence the investors’ interest in the property is unaffected by Winchester Financial’s inactivity.
When you become and investor you own an undivided interest in the property by your ownership of Units. The Units are issued by a corporation which is formed as bear trustee. This corporation is deemed to be inactive for tax purposes as all income and expenses are attributed to the beneficial owners (the investors). For the reason that this corporation is inactive it cannot be held liable, hence the investors’ interest in the property is unaffected by Winchester Financial’s inactivity.
