Farmland Investment

Hi All,

Something I've been struggling with is my desire to have 30+ Ha of farm land with a small section for personal use and lease the rest out (to a friend). The purpose would not be to make a profit but mainly for lifestyle reasons. I need (and want) to work in a completely unrelated field to farming, in a rural area.

If I buy farmland and lease either most or all of the land to a farm business to use, is the interest on the loan I got to purchase the land tax deductible for income other then the lease/rent payments ie from other salary income? Essentially can i negative gear it like a residential property?

Does it change if I earn over $250,000 as with non-commercial loss rules?

Does it change if I or a related party (family trust) own an interest in the farming business?

Thanks in advance for any advice, I have struggled to find any information about this situation.
 
Speak to an accountant for professional advice...

From what I gather, the same portion of your land and your loan would be tax deductable... eg 70% of land is for income producing (investment) then 70% of your loan would be tax deductable.
As for the income it would have to be declared as income, obviously depending on the structure of ownership.

Im not an accountant, please dont take this as financial advise.

Seek a pro :)
 
Thanks mate, I will see the accountant before progressing.

However I like to be fully 'armed' before i head in. Last time a had a complex request he charged me to research if my request was legit - even though I had established it was.
 
Primary production is a little more tricky because you get tax breaks from the government to help smooth out good/bad years in farming. Not sure if an ordinary accountant would be able to advise on it unless they are experienced in the area.
 
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