I'm due to settle on a brand new Marina Berth around July 2013, purchased direct from the developer to be used as an investment. I have a meeting with my accountant next month, but in the mean time thought I would seek some advice in preparation in determining the best way to structure the purchase.
I can either buy it in a company name, that I am registered for GST or a personal name/trust.
I have a few questions + also looking for pros and cons depending on which structure I use.
The contract purchase price states inclusive of GST with an item in the terms clearly stating that "the pruchase price specified in the schedule to the contract is inclusive of (does include) GST", then goes on to say "any GST incurred by the vendor in respect of supply under this contract will be paid seperately by the vendor and will not be passed on to the purchaser". The contract doesn't mention anything about the margin scheme, i assume this is because it states GST is inclusive.
This is confusing to me as the ATO define a Marina Berth to be Commercial property, which as I understand, should be PRICE + GST. I was considering purchasing the Berth under my Company which is registered for GST, then I could have 1/11th of the purchase price returned when I do my BAS, then obviously would have to charge GST on the rent.
However if I can't recoup the GST, then I see no benefit in putting in a company name.
Note: The total annual income will be approximately $6,000
Any recommendations or advice will be helpful so I can get my head around it before meeting with the accountant.
I can either buy it in a company name, that I am registered for GST or a personal name/trust.
I have a few questions + also looking for pros and cons depending on which structure I use.
The contract purchase price states inclusive of GST with an item in the terms clearly stating that "the pruchase price specified in the schedule to the contract is inclusive of (does include) GST", then goes on to say "any GST incurred by the vendor in respect of supply under this contract will be paid seperately by the vendor and will not be passed on to the purchaser". The contract doesn't mention anything about the margin scheme, i assume this is because it states GST is inclusive.
This is confusing to me as the ATO define a Marina Berth to be Commercial property, which as I understand, should be PRICE + GST. I was considering purchasing the Berth under my Company which is registered for GST, then I could have 1/11th of the purchase price returned when I do my BAS, then obviously would have to charge GST on the rent.
However if I can't recoup the GST, then I see no benefit in putting in a company name.
Note: The total annual income will be approximately $6,000
Any recommendations or advice will be helpful so I can get my head around it before meeting with the accountant.
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