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.
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.