Home Forums Money matters Buying a Commercial Property as Business premises

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  • #993306
    bigmonkey
    Member
    • Total posts: 2

    Hi team,

    Seeking some advise regarding the best way from a tax utilisation point of view to structure our finances around owning our business premises.

    In summary I work for another company full time, my partner operates her own PT business which has outgrown our backyard shed!

    We are looking at purchasing a commercial property for around 300k. There is space in this property for her PT business as well as some offices we would look to lease out individually.

    Does anyone know if there would be issues around me buying the property in my name, my partner paying me rent as a sole trader? Is this even the most effective thing to do?

    Apologies I am useless with this stuff – look forward to your thoughts on if there is a more tax effective way?

    #1190931
    Taxopia
    Member
    • Total posts: 301

    You need to look carefully at the ownership of the property to make sure that you can meet the eligibility for the small business CGT active asset concession if and when you eventually sell the property. If the asset is used in her business and you meet the tests than it can be highly beneficial. So as per normal, get some sound advice specific to your circumstances before proceeding.

    #1190932
    PRO
    Member
    • Total posts: 450

    Not common to own Commercial premises in an individual’s name unless they don’t have other assets. An entity like a trust can stop you being personally liable. Is buying it in your super fund a possibility?

    #1190933
    Anonymous
    Guest
    • Total posts: 11,465

    Hi bigmonkey, and welcome,

    It’s great that Mr Tax and Darryl have given you some initial info there, but please bear in mind that our resident experts are only really able to provide general advice in a forum environment.

    For a definitive answer that takes your personal circumstances into account, you’ll need to consult an accountant.

    We have plenty of good ones around here, so if you need to find one, let us know on this thread and I’m sure people will put their hands up or make a recommendation for you.

    Thanks for joining the forum, and best of luck however you decide to proceed.

    Jayne

    #1190934
    bigmonkey
    Member
    • Total posts: 2
    FS Concierge, post: 224210, member: 2205 wrote:
    Hi bigmonkey, and welcome,

    It’s great that Mr Tax and Darryl have given you some initial info there, but please bear in mind that our resident experts are only really able to provide general advice in a forum environment.

    For a definitive answer that takes your personal circumstances into account, you’ll need to consult an accountant.

    We have plenty of good ones around here, so if you need to find one, let us know on this thread and I’m sure people will put their hands up or make a recommendation for you.

    Thanks for joining the forum, and best of luck however you decide to proceed.

    Jayne

    Thank you friend and yes general advice is all i seek at this stage :)

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