Hi All, just after some general advice, obviously when things get serious I'd speak to my accountant but…..
I am looking into purchasing a small warehouse for hobby use (fine woodworking), the issue I have is with the GST.
Eventually I hope to build the hobby into a small business, but working fulltime it'll be more of a hobby for the first year or two.
Now if I buy it as an individual I am lumped with the GST, and am I right in thinking there is no means of getting it back?
But if I were to start a business, I would get the GST credits and have the additional funding to kick start my business in record time…
The GST portion of the purchase will be about 25-30K and I am based in Victoria if that makes a difference.
Thanks
JoezGet your abn & register for gst prior to purchase. Pay the applicable gst & claim it back after settlement. Then deregister gst. At least you get that back quickly.
If you aren’t registered you can’t claim or charge the gst.
Hey i would add If you sell commercial premises, such as shops and factories, you are generally liable for GST on the income.
You can claim GST credits on purchases you make that relate to selling the property (subject to the normal rules on GST credits), for example, the GST included in real estate agent's fees.
If you sell commercial premises, you may be able to use the margin scheme to work out the GST that applies to the sale. Using the margin scheme means your GST liability is equal to one eleventh of the margin for the sale of property, rather than one eleventh of the total selling price..
hope u get the point in it..
thanks for sharing ur review..
thanks…
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