Hi , I've decided to do my own accounts this year my accountant making too many mistakes.
I'm almost there but I have one question before I finish.
Can I claim GST as an expense ?
We all know you can't claim back GST on a buy to hold property (I'm a free lance designer). But can I write it off as an expense.
Example 1.
If my solicitor charges me 2000 dollars including GST for one of my investment properties can I claim the total as an expense. Can I claim the whole amount including the GST amount.
Example 2.
End of the year my property manager has passed on my net profit.
The statement says
$25,000 collected in rent
-$1750 Management Costs
-$218.75 GST (of the management costs)
-$2000 Repairs
So putting Total $21,031.25 in to my accountant.
Surely its this $21,031.25 noted as net profit so deducting the GST amount before accounting for this figure. Meaning the GST was an expense.
If this was to be written in an IR3R form ...would it look like this?
Property Management Costs = $1750+218.75 = $1968.75
I would appreciate any help. I've read some books and search the internet but haven't found the answer. I don't want to go back to my accountant and a new one will charge me a fair amount for a meeting.
thanks inadvance. Regards Fever.
I'm almost there but I have one question before I finish.
Can I claim GST as an expense ?
We all know you can't claim back GST on a buy to hold property (I'm a free lance designer). But can I write it off as an expense.
Example 1.
If my solicitor charges me 2000 dollars including GST for one of my investment properties can I claim the total as an expense. Can I claim the whole amount including the GST amount.
Example 2.
End of the year my property manager has passed on my net profit.
The statement says
$25,000 collected in rent
-$1750 Management Costs
-$218.75 GST (of the management costs)
-$2000 Repairs
So putting Total $21,031.25 in to my accountant.
Surely its this $21,031.25 noted as net profit so deducting the GST amount before accounting for this figure. Meaning the GST was an expense.
If this was to be written in an IR3R form ...would it look like this?
Property Management Costs = $1750+218.75 = $1968.75
I would appreciate any help. I've read some books and search the internet but haven't found the answer. I don't want to go back to my accountant and a new one will charge me a fair amount for a meeting.
thanks inadvance. Regards Fever.
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