Buying a Property (house) for office use on Existing Business

Hi All,

I am planning to buy a house and use it as an office. Due to the lack of rental properties in regional. We are planning to buy a residential property and use it as a home office. But my actual home will be in Melbourne. I have an existing profitable business running for almost 10 years.

Business is a Discretionary Trust, Company as Trustee.

my questions are

1) Can I buy a property pre-tax dollars, if the company has cash. or 60% deposit.
2) If we but an asset for 400,000 K. Should we depreciate or can we write it off in one year. and pay capital gains once we sell the property.

Please advise.

Thank you.

 

1. no
2. no

 

What if we buy a commercial property.

 

no difference

 

Seek tax advice. The questions asked indicate rudimentary tax knowledge. Buying house to use for a business may involve council approvals and a range of gst issues too

 

If you buy a house in a remote area for accomodation the ownership costs can be tax deductible.

The concept of capital v revenue is still relevant so you will not enjoy a 100% tax deduction but you have an opportunity that a lot of regional employers take advantage of with structuring staff salaries.

This is regularly done for farmers providing accommodation for Jackaroos and mining companies giving miners acccomodation.

Vic regional is not so remote.

 

Ross,

Thank you. I will check remote area housing benefits. The location is 500KM from Melbourne and there is not a single house for rent available. I might even look into a caravan.