Renting house to Company

[speedbump]

I'm not sure how to make this question correctly.
Does anyone know if I can rent the house we live in (we have a mortgage of $500k on this property) to my business company and then claim this as an investment for tax purposes. We already have a PPOR in Brisbane which would like to keep for a further 6 years.

Sorry probably a little vague.

Speedbump

 

[The Y-man]

I think you'll get into trouble with the "arm length" thingamyjiggy....

Cheers,

The Y-man

 

[Ol School Skata]

Apologies to change tack on this thread for a moment, but it did get me thinking.

If I buy a property and charge a higher than normal rent to my company (eg Median rent was 300, but charged $350) could this result in a higher valuation, to enable a draw down on a new valuation?

OSS

 

[Mry]

I think I already know the answer to this one but...

What would the company do with the property? For what purpose?

 

[alexlee]

Apologies to change tack on this thread for a moment, but it did get me thinking.

If I buy a property and charge a higher than normal rent to my company (eg Median rent was 300, but charged $350) could this result in a higher valuation, to enable a draw down on a new valuation?

OSS

If you find a friendly (or stupid) valuer on a bank panel who values purely from rent, probably.
Alex

 

[alexlee]

I'm not sure how to make this question correctly.
Does anyone know if I can rent the house we live in (we have a mortgage of $500k on this property) to my business company and then claim this as an investment for tax purposes. We already have a PPOR in Brisbane which would like to keep for a further 6 years.

You want to use the 6 year rule to protect the PPOR in Brisbane (which i assume is being rented out), and rent the house you currently live in to your company as an IP and have the company 'allow' you to live in it? Since your living in the house is not business related, and there are arms length issues (i.e. lack of) all over the place, I'd suggest it wouldn't be allowed if the ATO found out.
Alex