Forums / Getting Technical / Legal & Accounting / Claiming Residential

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  • Profile photo of keikokeiko
    Participant
    @keiko
    Join Date: 2008
    Post Count: 513

    I'm about to lease a residential property to someone and they want a tax invoice each month so that they can claim the bulk of the rent threw there books as part of the house will be used for business purposes, the rental is $2900 per month,
    What I would like to know is if I have to pay GST from the $2,900 as I'm GST registered
    Or do I just do out a invoice and still have my ABN number on the invoice but I just put $2,900 GST Exempt?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Not a direct response to your question but something worth considering – does your insurance company allow for this?

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,850

    is the property owned by you/your company with the abn? Is the bookkeeping company’s name on the lease?

    As you are not able to charge gst on residential, issue one invoice for the total rent payable to be received in monthly payments.

    I do find that most accountants will accept that the lease is sufficient to evidence the requirement to pay rent & the direct credit at the bank is evidence of payments.

    Profile photo of keikokeiko
    Participant
    @keiko
    Join Date: 2008
    Post Count: 513

    owned by me and I have a ABN, Yes book keeping on the leasse

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,850

    2 possible answers: as the lessee is the bookkeeping company, will they pay gst on top of the rent? Or just be happy with standard gst exempt status.

    Profile photo of keikokeiko
    Participant
    @keiko
    Join Date: 2008
    Post Count: 513

    They would pay either way

    I think I will just go GST exempt

    Profile photo of DAMPropertyDAMProperty
    Participant
    @damproperty
    Join Date: 2011
    Post Count: 44

    There is no GST on residential rent.  Normally you wouldn't provide an invoice for residential rent.  I have seen where some people provide an Invoice/Statement for residential tenants and the invoice/statement has their details on it and their tenant's details on it.  There is no need for an ABN on the invoice and it doesn't need to state whether it has GST included in the amount.  The tenant may not even be registered for GST.
    On another point, does the local council allow someone to run a business from the property.

    DAMProperty | DAM Accounting Services
    https://www.damaccountingservices.com.au

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