Hi guys,
I am just looking for some help to deal with the accounting issues from my first time development project.
My wife and I bought 2 joined properties (sitting next to each other) and now we have got DA approved to demolish the existing house on one block and build 6 townhouses around the dwelling on the other block. Since the properties are held in our personal names and we might have to pre-sale 2 to 3 units,for which I have pay GST using Margin Scheme, we have decided to to setup a Partnership to carry this development business. Now we just got some questions about how to set it up correctly:
1. Since the properties are held in our personal names, do we need to transfer the title of properties to the new Partnership?
2. I have got some Tax Invoices during the DA stage when we have not setup the Partnership with GST registered. Can I claim those historical GST credit after I have the Partnership setup?
3. Both my wife and I do our own tax return every year, are we required to get a tax file number for the Partnership and lodge tax return for it?
4. I would like to keep least 3 units after the required presale and all of them will be a little bit negative on cash flow if I refinance them up to 80% of the end value. Can I still claim the lost on those units (negative gearing) in Partnership as we do in our personal tax return?
Thanks in advance.
Cheers,
Anson
I am just looking for some help to deal with the accounting issues from my first time development project.
My wife and I bought 2 joined properties (sitting next to each other) and now we have got DA approved to demolish the existing house on one block and build 6 townhouses around the dwelling on the other block. Since the properties are held in our personal names and we might have to pre-sale 2 to 3 units,for which I have pay GST using Margin Scheme, we have decided to to setup a Partnership to carry this development business. Now we just got some questions about how to set it up correctly:
1. Since the properties are held in our personal names, do we need to transfer the title of properties to the new Partnership?
2. I have got some Tax Invoices during the DA stage when we have not setup the Partnership with GST registered. Can I claim those historical GST credit after I have the Partnership setup?
3. Both my wife and I do our own tax return every year, are we required to get a tax file number for the Partnership and lodge tax return for it?
4. I would like to keep least 3 units after the required presale and all of them will be a little bit negative on cash flow if I refinance them up to 80% of the end value. Can I still claim the lost on those units (negative gearing) in Partnership as we do in our personal tax return?
Thanks in advance.
Cheers,
Anson
