Business strategy for NZ / Aus depreciation

Discussion in 'Accounting & Tax' started by Carl Greaney, 19th Nov, 2016.

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  1. Carl Greaney

    Carl Greaney New Member

    Joined:
    18th Nov, 2016
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    Location:
    Brisbane
    This is a hard one. But hopefully someone out there can guide me in the right direction.

    So i currently work in the mines in Queensland and live in Brisbane while My Dad lives in NZ. We have already started a partnership and purchased a block of land with a 4 bedroom house on it thats rented out. The back part of the left over land we have developed into a self storage facility. The question is, how should i be setting this company or partnership up so i can receive tax benefits on my income from the mines and not increase my income by receiving money from the company?
    This is my strategy and im hoping it makes sence.
    So dad and I own the land, house and storage shed but we lease the storage sheds to the self storage company which we have created. My understanding is that I would be able to claim deprieciation from the storage shed and the house off my Australian tax.
    Is there a way better way to structure all of this with me working in Australia in mind. I do not think my account has dealt with this sort of work before so any help would be great or recommendations on a nz/aus tax expert.
    Please move this post if its in the wrong area.
     
  2. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,192
    Location:
    Kimberley and NZ
    Hey, I'm assuming the house and block is in NZ. I invest between Aus and NZ and use @Paul@PFI on this forum who thank god seems to be able to offer very clear advice and options. Kissed plenty of frogs beforehand though :)
     
  3. Carl Greaney

    Carl Greaney New Member

    Joined:
    18th Nov, 2016
    Posts:
    2
    Location:
    Brisbane
    Thanks so much !! . I will try amd get in contact. ☺
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Location:
    Sydney
    My concern is that operating and owning a self storage site is not passive rental income. Non-commercial loss rules may (or may not) limit the offset of a rental loss v other earned income.

    Personal tax advice is a sugestion. I didnt get where NZ fits in......If the property is in NZ there could also be a issue with foreign losses.
     
    Terry_w likes this.