negative gearing shed

[Timkot]

Inquiry please folks, I have a 5 acre block of land that has a shed that is rentable to a handyman or anyone for that matter for storage at about 30 bucks a week. Can I claim the property as an investment property if I do this. Irrespective of whether I am planning to build on the block or not.

thanks

 

[Brady]

Inquiry please folks, I have a 5 acre block of land that has a shed that is rentable to a handyman or anyone for that matter for storage at about 30 bucks a week. Can I claim the property as an investment property if I do this. Irrespective of whether I am planning to build on the block or not.

thanks

Are you also providing the handyman access to the land?

Is this part of the lease?

I'm no tax accountant so this is just an assumption...

I would assume that if the handyman is only having access to the shed, then you would only be able to claim a portion of the interest/expenses (thats also assuming that you have borrow money to purchase the block).

Speak to a professional.

 

[DaveM]

What is the market rental of of the land in its entirety? The pro-rate % of the total vs the shed only may be deductible.

 

[Timkot]

How do you determine its value for anything. I would imagine the person rented the shed out to would have access to the whole property as I would imagine that to claim the whole property that person would have access to the whole property.

thanks

 

[Brady]

You need to also consider that if the property is an investment then there could be CGT to be paid at a later stage if you sell.

This could outweigh the $30p/w rent and tax benefits.

Speak to a accountant who can provide specific advise

 

[redwing]

Inquiry please folks, I have a 5 acre block of land that has a shed that is rentable to a handyman or anyone for that matter for storage at about 30 bucks a week. Can I claim the property as an investment property if I do this. Irrespective of whether I am planning to build on the block or not.

thanks

Is it worth it for $30 p/wk

Or are you thinking that for only $30 p/wk (Less than a ctn beer) you can deduct the interest on the loan for the 5 acres?

 

[psylink]

I've actually been wondering a similar thing when looking at some possible land bank ideas. I wanted to know what kind of structure would be considered a rental and at what point you can deduct the interest on the loan. I was planning a visit to my accountant soon so was going to ask then. If no update to the thread by then ill post his answer.

 

[Corey Batt]

Another option is hobby farms, btw.

 

[Timkot]

Certainly would be looking at technically renting out the land with the shed, to hopefully enable claiming the whole land/shed repayments.