Letting apartment to your own pty ltd company

[Shanty]

Wondering if I leased my apartment to a pty ltd company of which I am the director (arms length at market rental, of course) would that establish the apartment as an investment for tax purposes and allow the usual deductions? (I would be living elsewhere but use the apartment as a business premises)

 

[datto]

What sort of business could you run from a resdential apartment? Oh, I get it, one of "those businesses" lol. Any private usage could attract FBT and maybe GST.

 

[vaughan]

What sort of business could you run from a resdential apartment? Oh, I get it, one of "those businesses" lol. Any private usage could attract FBT and maybe GST.

Could attract STDs as well.

 

[datto]

I got an itch!

 

[Scott No Mates]

What sort of business could you run from a resdential apartment?

Funny business?

But seriously, you are not the same entity as your company, even if you are a director.

If the building was being used as your office premises (legitimately) then it should be deductible - just don't sleep there or it will be subject to fbt.

 

[Xenia IM]

Yes you can rent to your own company and claim deductions.
Your accountant will be able to apportion the business use from normal personal use and claim only the Porton that has been used for business.

 

[Paul@PFI]

Is the occupancy then resi or commercial ? What is zoning ?? If its a company do you have a DA ? The ATO may see it as a place of business for convenience and the company denied all deductions too. (And then deny you deductions but assess the income). You don't mention the type of business activities. If its just admin that you presently do at home I think its a fail.

Then there is the CGT problem.

If the purpose is to make the vacant property appear tenanted so deductions can be claimed I will say Part IVA is a high risk. Especially so if property is undergoing initial repairs.

If it was arms length wouldn't you just rent it out to a willing tenant ?