We have recently purchased a caravan – not a particularly bright financial decision, but we had other reasons.
Can a caravan count is an IP in anyway? (other than owning the whole park!)
Samhey dreamergirl – good question
yes it can if it makes you money.
will you rent it out???
A caravan is not a property.
A caravan will never appreciate in value.
But a caravan could earn you income from leasing it out to a park operator.
This would be a business not an IP.
And before you think of it as tax dodge think again, alot of hobby concepts were recently deemed by the ATO as non business entities therefore the losses could not be written off against other income.
You should get advice from your accountant.
However there are many caravan parks in NSW (not sure of other states) that the caravan and structure is not really moveable and you own a lease to that site and also the structure on the site, under this situation it could certainly be reasonable to count as an investment property.
But the park fees are not cheap.
your accountant will give you a much better understanding.
Either way enjoy your caravan.
Thanks both of you for answering.
Pulpo’s, I don’t like to think of myself as trying to do a ‘tax dodge’, avoid rather than evade perhaps!
And it is set up the way you describe, a permanent structure in a NSW caravan park. With expensive site fees. I’ll have to have a chat to the office and see if they can perhaps rent it out. Then off to find a decent accountant.
Thanks again.
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