OK, i'm trying to educate myself on investing in commercial properties and i've come across this GST component which is so left field when comming from a residential mindset.
i) To start off with, i've read that once you enter into commercial investing you must register for an ABN and GST. This is fine as if I do buy commercials I will be going through a trust. Does this mean that the trust will have to have an abn and gst registered.
ii) I also read that most expences paid (ex taxes, rates, etc) will have GST included and that I can claim back the GST bit. Is this correct.
iii) When buying properties i have found a lot of properties on RC.com that has a sale price + GST. Does this mean that I have to budget for 10% extra of the sale price. I suppose I would get this back from the ATO but it is a pretty high upfront cost.
iv) This leads me to my final question. How would my trust get back the GST. Would the ATO just write the trust a check. Or must it be offsett against income - kind of like negative gearing in that it will lower the taxable income. If the former then when would I get the check and if the latter then that kind of sux because I won't see it back until the trust starts making money.
I've got tones more Qs but will start off with these
i) To start off with, i've read that once you enter into commercial investing you must register for an ABN and GST. This is fine as if I do buy commercials I will be going through a trust. Does this mean that the trust will have to have an abn and gst registered.
ii) I also read that most expences paid (ex taxes, rates, etc) will have GST included and that I can claim back the GST bit. Is this correct.
iii) When buying properties i have found a lot of properties on RC.com that has a sale price + GST. Does this mean that I have to budget for 10% extra of the sale price. I suppose I would get this back from the ATO but it is a pretty high upfront cost.
iv) This leads me to my final question. How would my trust get back the GST. Would the ATO just write the trust a check. Or must it be offsett against income - kind of like negative gearing in that it will lower the taxable income. If the former then when would I get the check and if the latter then that kind of sux because I won't see it back until the trust starts making money.
I've got tones more Qs but will start off with these