RENT GST

Viewing 8 posts - 1 through 8 (of 8 total)

coreyjay
Participant
@coreyjay
Join Date: 2005
Post Count: 38
July 11, 2005 - 8:50 am
Can someone explain why i am paying rent gst on my previous negatively geared ppor its not in a business name and im not registered for gst could someone knows the answer please tell me how this works Thankyou
coreyjay
JKM
Member
@jkm
Join Date: 2005
Post Count: 82
July 12, 2005 - 3:49 am
Hi Coreyjay,
Give me some more info.. Do you mean the rent includes GST or do you mean your agent is charging you GST I am not sure where the GST fits in
Kim
redwing
Participant
@redwing
Join Date: 2003
Post Count: 2,733
July 12, 2005 - 4:21 am
You mean your agent charging you GST in the statements you recieve?
There is GST applicable to some stuff..agree with JKM for more details..
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coreyjay
Participant
@coreyjay
Join Date: 2005
Post Count: 38
July 12, 2005 - 6:25 am
Hi JKM&Redwing.We rent our property for $240pw and the re agent takes their fee which is 8% approx $20 and takes out the gst component out of $240 which is approx $24 and we’re left with $196 Thankyou for your responses
Coreyjay
JKM
Member
@jkm
Join Date: 2005
Post Count: 82
July 12, 2005 - 7:03 am
That can’t be right Coreyjay. No GST is applicable to the rent of a residential property. You can only charge GST if you are registered & own a commercial/industrial property.
The agent will charge you GST because they are running a business which is supplying a service being the property management. So, they will charge 8% of the $240/wk (which is $19.20) plus 10% GST on this service (which is $1.92).
You should then receive $218.88 per week. The only other thing to check is if they are also charging a “statement fee, mailing fee” etc. This may be where the rest on your money is going.
If you need any other help on reading the statement, scan it in & email me, I am happy to help you understand the components
Kim
Tools
Participant
@tools
Join Date: 2003
Post Count: 363
July 12, 2005 - 7:22 am
JKM is correct.The agent should be charging you 19.20 plus 1.92 GST for his services.If this was a commercial property and you were registered for GST,it is still not up to the agent to deduct that from the rent.All he would be deducting would be his 21.12 and any other charges,and any GST you were liable for would need to be remitted by you with your BAS.
coreyjay
Participant
@coreyjay
Join Date: 2005
Post Count: 38
July 12, 2005 - 9:22 am
Hi JKM&Tools
Thankyou for you invaluable answers and taking the time to answer,i will talk to my RE agent
Coreyjay
redwing
Participant
@redwing
Join Date: 2003
Post Count: 2,733
July 13, 2005 - 1:56 am
Let us know how you go…
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator