hi, about to purchase an ip, but this time since my company pays my rent, i’ll be living in this property, but i’ll still be the landlord and my co. will sign the lease…can i still claim deductions from loan, etc?
Hi Picklesam,
Couple of questions to clarify your situation.
Who is going to own the IP, you or your company?
Why does your company pay your rent?
Who has the loan for the IP, you or your company?
Is it a company (Pty Ltd) or just a business in your name?
Happy to help, but just didn’t quite understand your post clearly.
Ross
Hi Ross:
Ip will be in my name, i will own it
my company pays my rent as part of a package…Salary is about $95k, I told them to give me $73k instead and the rest they rent me a house…
The loan is in my name
It’s a Pty Ltd…
It seems the only reason you would do this is if there are taxation advantages. In that case Pt IV A Income Tax Assessment Act might apply.
There is a Taxpayer Alert in relation to remote housing for this kind of arrangement
http://law.ato.gov.au/atolaw/view.htm?docid=TPA/TA20029/NAT/ATO/00001
hi crj….yeah the features outlined is pretty much what’s happening…but i don’t know whether the link tells me whether i can do it or not…don’t understand the alert bits….i better ask an accountant
Taxpayer alerts appear to have been introduced in 2001 because of issues with taxpayers investing in various schemes after the ATO had concerns. An extract:
“The third measure has been to introduce a Taxpayer Alert
system in 2001 that warns taxpayers about significant new tax planning issues and
arrangements that are of concern to the Tax Office.”Certainly you are taking a prudent action in seeking professional advice
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