Claiming Residential

Viewing 7 posts - 1 through 7 (of 7 total)

keiko
Participant
@keiko
Join Date: 2008
Post Count: 513
October 4, 2011 - 1:15 am
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?
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
October 4, 2011 - 1:26 am
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]
Scott No Mates
Participant
@scott-no-mates
Join Date: 2005
Post Count: 3,856
October 4, 2011 - 9:27 pm
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.
keiko
Participant
@keiko
Join Date: 2008
Post Count: 513
October 5, 2011 - 1:42 am
owned by me and I have a ABN, Yes book keeping on the leasse
Scott No Mates
Participant
@scott-no-mates
Join Date: 2005
Post Count: 3,856
October 5, 2011 - 6:37 am
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.
keiko
Participant
@keiko
Join Date: 2008
Post Count: 513
October 6, 2011 - 4:51 am
They would pay either way
I think I will just go GST exempt
DAMProperty
Participant
@damproperty
Join Date: 2011
Post Count: 44
October 17, 2011 - 5:40 am
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