I have an I.p I have owned it for less then a year and for verius reasons I have to move my self and family into it in the near future.
Its owned in the name of my company, and I have a $50,00 investment loan over it.
it has been returning me $150 per week income, and I'm going to loose this once I move in.
I wonder what are some of the other things I will loose by moving in…Tax deductability ? etc
Can I lease/rent the property to my self and pay $150 into an account as if its rental income ?
Is there any advantage disadvantages to doing this ? hope some one with more knowledge can help me with this
thanks
nucopiaIts a bit complicated in renting a property from a company you are a director of as your employer will be providing you with a benefit and there is Fringe Benefits Tax to be calculated. This is very confusing (to me anyway).
As far as I am aware your company will have to charge you market rent and you will just pay this as if it is a third party that owes the property. You may be able to do some things such as charge yourself a lower than market rent (eg. if you mow the grass) or a higher rent (if the company has the grass mowed etc) depending on the circumstances, but should seek the advice of your accountant.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
