Hi all,
I have been made aware of changes this financial year to the instant asset write off threshold from $1000 – $6000. http://www.ato.gov.au/content/00307676.htm
I own a holiday rental property and looking to buy another one. As we supply all furniture and appliances etc I found this article interesting and didn't know if it was applicable to investment properties. I currently own my property under my own name and, like i mentioned, I am looking to buy another one I thought it may be worth making a small business to gain these benefits?
Honestly I don't know the pros and cons between just having a IP under my name or owning it as a business/ (I guess I cant claim the losses against my own income if its a separate business?). The IP I own is close to being neutral at this stage so this may come into consideration.
So does anyone know if this is applicable to my circumstance,
Thanks in advance,
Invest2surf
The key requirement is to be able to access the small business concessions in Division 328 ITAA97.
The first requirement being that you carry on a business.
An activity of renting a single holiday property appears to be mere passive investment income based on the facts you have given above.
This is regardless of whether the asset is held personally.
The ATO website has advice and rulings providing guidance on how to determine if an activity amounts to carrying on a business.
Cheers,
Rob
Very unlikely to be in business.
Also even if you could somehow wrangle it to be running a business of holiday rentals you can end up in business banking with higher interest rates and lower LVRs.
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