Quick Question.
Accountant is trying to apportion expenses (rates/building insurance/land + legal liability insurance/repairs) for a property that i jointly own with two partners.
The tenants are renting the house and about 20 acres of the land.
The remaining 45 acres of land has cattle running on it (which we are running as a hobby as there will only be a small turnover of about 9 cows per year) and we also occasionally camp on this 40 acres. Probably a half dozen camping trips per year.
Can anyone suggest a reasonable argument for maximising the amount apportioned as a investment expense (tax deduction).
I was thinking that a house on 20 acres by itself in this area would be worth about $280,000. And since the total property value is $300,000 , then we could apportion 280/300 = 93% of the expenses towards investment expense for tax.[
](wishful thinking?)[]Can anyone help?
Live, Learn and GrowLifexperience
How much income is the house bringing in and how much are the cash cows bringing in?
Did you say camping or property inspections?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorRedwing,
The cows haven’t even been to market and we will be lucky to make a thousand each a year.’,,, the house is making good rental price.I would have said property inspections but my partner has been raving to his accountant about how much fun him and his kids are having at this block.
So I have kind of been dropped in it, hence my need to keep it straight.
????
Live, Learn and GrowLifexperience
[biggrin][biggrin]Sounds like a great weekend retreat LifeX..I’m jealous..
Sounds like you’ve got a big fence to depreciate, have you thought about what else to do with the block (i.e Agistment etc etc)?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorIt is a good little retreat, and even though there are a lot of things I’d like to claim……yeah, I suppose I will just have to cop it wrt my partners accountant apportioning investment and non-investment .
I can’t have it both ways and I don’t like the idea of going to jail as a tax evader.
Cows seem to be the most profitable and least hassle. Although as a vegetarian it does somewhat go against my principles.
We do have long term visions of running it as a base-camp for motorbike/dune-buggies related adventure tours………..then we could claim more as an income related expense.
cheers
Live, Learn and GrowLifexperience
](wishful thinking?)[
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