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tokyoman(Initiate)Initiate
4 June 2023

Hi, I am thinking of moving into a city apartment and purchasing it with 50% ownership in my individual name and 50% in the name of my PTY company (which I own 100%)

In the apartment I will have my living area for myself and half of the area would be for the company (which is involved in futures trading)

Half of all expenses like electricity , strata would be paid by myself and the other half by the company .

I am wondering if this can be done and if there is any issues with division 7A and GST ? I assume the company could claim back GST paid on electricity etc but would it have to pay GST on its share of the apartment if sold? Is that right?


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8,559 views
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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
5 June 2023

I am wondering if this can be done and if there is any issues with division 7A and GST ?


More likely a housing fringe benefit if you do not pay rent to the company, but no GST issues.


Bad idea to buy property in a company because there is no 50% discount on capital gains.


I assume the company could claim back GST paid on electricity etc


No - it is a residential property. Also, company cannot pay elec - that is tenant's responsibility i.e. yours.


but would it have to pay GST on its share of the apartment if sold? Is that right?


No - residential property.


You need to get proper advice before doing this.


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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
5 June 2023

I am wondering if this can be done and if there is any issues with division 7A and GST ?


More likely a housing fringe benefit if you do not pay rent to the company, but no GST issues.


Bad idea to buy property in a company because there is no 50% discount on capital gains.


I assume the company could claim back GST paid on electricity etc


No - it is a residential property. Also, company cannot pay elec - that is tenant's responsibility i.e. yours.


but would it have to pay GST on its share of the apartment if sold? Is that right?


No - residential property.


You need to get proper advice before doing this.


Peter_Clyne(Superuser)Superuser
6 June 2023

I suspect that as a futures trader, you're dealing in "input taxed supplies", so perhaps your company should not even be registered for GST.

I agree with other comments from @Bruce4Tax.

I suggest you have a meaningful discussion with an experienced accountant.

S/he will be able to explain the issues, and help you avoid making unfortunate mistakes.

You're welcome.

Liked by Peter_Clyne

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