two registered commercial divide into one residential

Discussion in 'Accounting & Tax' started by Fernfurn, 11th May, 2017.

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  1. Fernfurn

    Fernfurn Well-Known Member

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    by a Bellarine beach
    I am looking at a property which has a front retail shop downstairs and an apartment upstairs with entry through the back garage. The long term tenant is willing to sign a new lease in the shop. If I purchased this property (but not the business) would I have to pay gst on the purchase price?
    Also I would be able to add a separate entrance passageway, stair and door within the garage to the upstairs apartment. Obviously subject to council regulations which I will find out tomorrow, could I get the top half designated residential whilst leaving the ground floor front shop commercial?
     
    Fernfurn, 11th May, 2017
    #1
  2. Terry_w

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

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    It depends
     
    Terry_w, 11th May, 2017
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    Corey Batt likes this.
  3. Paul@PAS

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

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    There could be signicant GST impacts but with right position it may be a small issue (or not). Personal tax would assist and this could materially affect outcomes.

    If you buy existing commercial premises - Yes GST may apply. Question is how much.
     
    Paul@PAS, 11th May, 2017
    #3