Lease Option / Lease Hold Questions?????

[watto]

G’day Forumites,

I’m looking for some input / answers to the following questions. I will seek specific advise from an accountant / solicitor, but would like to get a head start first. So here goes….

1. Does the Lease Option / Lease Hold of a going concern attract GST on the initial deposit / strike price?

2. Can the contract be set-up so the vendor gets the deposit money 1 month prior to the execution of the contract? I.e. monies paid at start of June 03 but actual takeover to start on 1st July 03.

3. Does the final purchasing entity structure need to be in place before the contract is signed? Or can the contract be nominated say 5 years down the track when the option to buy is taken up?

4. Can the lessor claim depreciation on the business assets during the lease period?



Well that’s a start for now………

Cheers
watto

 

[watto]

*bump*


hmmmm no takers.......

 

[Terryw]

Watto

I have a few lease options (wraps), so will give it a go.

1. If it is residential property, then I beleive there would be no GST payable,

2. I am sure you could set the contract up like this or similar,

3. The person buying is able to assign their option to someone else with your permission,

4. Not sure on this one, but have heard someone else claim this as well.

I'm no accountant so may be wrong on these?

Regards

Terryw