Question about ABN criteria for IP investors

Viewing 3 posts - 1 through 3 (of 3 total)

mrdouble08
Participant
@mrdouble08
Join Date: 2008
Post Count: 6
August 13, 2008 - 2:06 pm
Hi All,
Has anyone here registered an ABN on the basis that they own a IP? From what I've read the ATO ruling allows investors with residental property to obtain an ABN regardless of the PAYG ruling. I want to register an ABN so I can register a com.au domain name (yes I am a IT nerd).
Thanks,
Chewy
http://law.ato.gov.au/atolaw/view.htm?docid=GSD/GSTD20009/NAT/ATO/00001
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 14, 2008 - 1:57 pm
Hi
Do you mean Business name? Having an ABN is separate to having a business name
I don't think you need an ABN to register domains, or a business name – anyone can register any name now I think.
And, I am not sure what benefit there would be in registering an ABN if were weren't running a business – unless you are considering getting one to qualify for low doc loans in the future.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
acelliers
Participant
@acelliers
Join Date: 2004
Post Count: 14
August 14, 2008 - 11:15 pm
Hi Chewy
First of all, you need to establish if your investment property is a residential property or a commercial property. If you just have a residential property (house, flat) that you rent out permanently (not like a holiday rental) you are not deemed to be carrying on a business and if you are not deemed to carry on a business you don't qualify for a ABN. Please refer here to para. 6 " However, it is not wide enough to cover the letting of a property by itself, which is an activity in the nature of investment rather than a business, or an adventure or concern in the nature of trade.⁹ Therefore, paragraphs (a) and (b) do not need to be considered any further"
You did not mention if you purchased your IP in your own name or say in a Trust Structure – I am just assuming here that it is in you own name. You also did not say if you are involved as a Sole Trader business or are thinking of starting one up as a Sole Trader or in another structure. You also did not metion if the domain name is for the IP or for some other activity. Would be happy to assist if you can supply a bit more info.
Regards
Anne
Chartered Accountant