I want to know if there are any rules or laws that would stop me from applying for an ABN and starting a business relating to property investing, home maintenance and renovations. The specifics arent really important at this stage.
But basically use rent received from any investment properties as cash coming in. Just like primary producers, once they turn over 18K+ they can then start to ride off expenses against the business. Expenses like cars and fuel and storage and anything in your day to day life running a business that specialises in property investing and restorations?Would be great to hear some opinions on this! There are plenty of people who run businesses in other industries with no other objective other than to provide a legal way to ride off expenses. And as I mentioned, primary producers are classic examples of this. These guys constantly run at a loss.
Is anybody game to touch this or is it just too stupid??
I will not be offended by any comments so feel free to tell me what you really think
Is there seriously nobody on here willing to add their point of view, either to shoot me down or add some form of input???
Having an ABN won’t change anything. You cannot contract with yourself and even if you could the income would cancel out the deductions. Nor could you claim more expenses just by having an ABN. If you are contracting with others you could claim expenses associated with the production of this income.
Would you need any licences?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
Thanks for clarifying that. I thought it was a long shot but I was just curious as to whether anybody else was doing something like this. Legally of course. I know it sounds dodgy but I know of guys who buy and sell 18k of car parts each year under a business name and then run a race team at the expense of that business, often at a loss, and do it legally.
And as I mentioned in my first post farmers who buy $18k worth of cows under an ABN at the start of the financial year and sell them for 18k a year later, sometimes even at a loss. But this allows them to write off expenses from their farm including vehicles and fuel, repairs, fencing, etc.
Can you explain the difference between the examples above and what I am proposing. Is it because they are purchasing a product?
Corie
It is the same principle. If you make a loss from a legitimate business or investing in houses this loss can be used to offset other income. For property it works if you have an ABN or not (because property investment is not a business ususally).
If you start offering services to others then this would be a business and you could claim associated costs, including travel you make in connection with the income.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
