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shed rent, tax deductable?

Discussion in 'Accounting & Tax' started by Timkot, 28th Mar, 2016.

  1. Timkot

    Timkot Member

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    Hi I have a vacant block of residential land, that has a 9x9 shed on it. If I was renting that shed out for 50 bucks a week to someone, does that make the whole block claimable on tax much like a house, negative gearing.

    thanks
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    As long as $50pw is market rent (if market rent was say $100pw, then you'd only be entitled to, in this case, 50% of the available expenses) and if there is a reasonable expectation of making a taxable profit in time. (the ATO is not interested in allowing neg. gearing an an investment forever)
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    It all depends.
     
  4. legallyblonde

    legallyblonde Well-Known Member

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    They might be renting the shed, but just make sure the lease is inclusive of the whole property. Then I wouldn't imagine that you would have many issues. If they only want to use the shed... Doesn't matter.
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Unlikely to give rise to property deductions. This is like the position the ATO take on agistment. Worth seeking personal tax advice as its not straight forward and could lead to issues such as penalties etc.
     
    Propertunity likes this.
  6. Timkot

    Timkot Member

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    Thanks folks, gives me somewhere to go