Hi All
My wife and I are buying a strata titled office which settles in 2 weeks. We are buying it in our own names and leasing it to my business which is a company. We will of course, lease it at market rates to keep everything at arms length.
The office is brand new and the purchase price is $202,000 + GST ($20,200).
I had not considered the GST implications previously and now am in a bit of a panic to find out where I stand.
I've been told that if my wife and I register an ABN as a partnership and register for GST, we can claim the $20,200 on the first Business Activity Statement after settlement.
We don't want to do anything complex like set up a trust in which to purchase and are happy with 50/50 fixed split of income (as per the land title which I think the ATO usually goes on).
So what happens if we do the above?
If I understand correctly we will:
* Have to charge GST on the lease (no problem)
* Be able to claim GST on all purchases/maintenance/costs related to the office that my wife and I spend.
* Have to submit quarterly BAS.
* Have to submit annual income tax returns for the partnership.
Will it affect the 50% CGT exemption?
Is there anything that stops you from just deregistering for GST after the first BAS?
I'm getting some advice this week but I'm running pretty short of time and want to make sure I'm heading in the right direction.
Thanks
Adam
My wife and I are buying a strata titled office which settles in 2 weeks. We are buying it in our own names and leasing it to my business which is a company. We will of course, lease it at market rates to keep everything at arms length.
The office is brand new and the purchase price is $202,000 + GST ($20,200).
I had not considered the GST implications previously and now am in a bit of a panic to find out where I stand.
I've been told that if my wife and I register an ABN as a partnership and register for GST, we can claim the $20,200 on the first Business Activity Statement after settlement.
We don't want to do anything complex like set up a trust in which to purchase and are happy with 50/50 fixed split of income (as per the land title which I think the ATO usually goes on).
So what happens if we do the above?
If I understand correctly we will:
* Have to charge GST on the lease (no problem)
* Be able to claim GST on all purchases/maintenance/costs related to the office that my wife and I spend.
* Have to submit quarterly BAS.
* Have to submit annual income tax returns for the partnership.
Will it affect the 50% CGT exemption?
Is there anything that stops you from just deregistering for GST after the first BAS?
I'm getting some advice this week but I'm running pretty short of time and want to make sure I'm heading in the right direction.
Thanks
Adam