shed rent, tax deductable?

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

 

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)

 

It all depends.

 

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.

 

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.

 

Thanks folks, gives me somewhere to go