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  • confused

    Hi, I am a confused hopeful soon to be new property investor.
    I have read a few books, I have appointments to see an accountant and have spoken to other property investors and now am more confused as to whether I should purchase in my own name or a LAQC.
    I own my own home (no mortgage), have no partner or dependents. I am interested in buying a managed unit in a small tourist town with a view to buying other rental houses in the future in the city.

    One other basic question - if a property is zero rated and purchased as a going concern does that mean I would have to be GST registered, do I pay the GST on purchase and then claim it back or would the GST be paid when I sell in the future (10yrs+).
    I have read that LAQC's are not able to register for GST as no GST is applicable to domestic rental. What happens with the purchase of a managed unit - is this counted as domestic or business rental.
    Thanks for reading this and hopefully clearing up some of my confusion.

  • #2
    Hi Dinky,

    A warm welcome to PT

    LAQC can be registered for GST. Mine is like that.
    There has been a number of past discussions on the merits of LAQC. Here are two:

    Minimsing personal tax with LAQC


    Starting out investor


    See if that helps. You can also use the Search function to search for this subject.

    Comment


    • #3
      Hi Dinky

      Two questions
      1. Have you discussed what you want to do with an accountant?

      2. Do you work for a wage?

      Regards
      "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

      Comment


      • #4
        confused

        Hi, Thanks for your replies and suggested links.
        Yes I do work for a wage - in the 39% tax bracket. I had an informal discussion with an accountant who suggested that I wouldn't need an LAQC but then also stated that it would provide me with some potential advantages. (that's why I am a bit confused).

        There may be a potential short-term negative cashflow on the property so I realise that I need to look at capital gain when selling in the future.

        All help gratefully received. Dinks.

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