Buying property for company or trust

Discussion in 'Accounting & Tax' started by luke83, 26th May, 2020.

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  1. luke83

    luke83 Well-Known Member

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    Im looking at buying some land to be used for a new business, my exact legal entity has not been locked in yet ( only had chat with accountant yesterday) but i do have a question, if i borrow to buy this asset, that is a cost of doing business, as such as assume something comes off my income each year, thus reducing my tax. Is it only the Bank interest that is claimable or is somehow the entire amount claimable?
     
    luke83, 26th May, 2020
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    The purchase price is never deductible. It is only the expenses that could be deductible and this doesn't really depend on the ownership entity, but there are some differences between company owners and non-company.

    You would also probably not want the entity that is operating the business to own the land. You would set up a company or company as trustee to own it and then lease it to reduce risk

    Seek legal advice.
     
    Terry_w, 2nd Jun, 2020
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