Hi
I have a tourist accommodation business with a single DA approved Tourist cabin (fully independent cottage) on my five acre property, where I also have a residence. The cottage is run as business and limited by the Shoalhaven City Council to 40 days max. as a consecutive booking and 150 days in a year (as per DA ) . The property status as on Ru1 acreage does not permit additional permanent residence to my own 4 bedroom house. I cannot therefore operate the cottage as a permanent rental. There are many responsibilities and service provisions as a host that are different from the landlord of a 'rental property" including supplying consumerables to guests, cleaning, washing linen, maintaining house, maintaining gardens and lawns, welcoming guests on arrival, providing tourist information and being available to guests during stay for problem solving s etc . It has been registered with an ABN since October 2009 as a family partnership and transferred to ASIC registered business, sole trader in 2004 after my husband died. Why then do my accountants, both past and present, insist on regarding and lodging it with the ATO as a 'Rental Property' for Tax purposes? I have challenged this on a number of occasions but keep hitting a brick wall.
I need some ATO TAX advice as i believe it should have always have been classified as a business for Tax purposes and as I am considering retiring soon (i am aged 67) I need to consider CGT issues etc which are different for small businesses compared to rental properties.
Please advise.
KInd regards
Branwen
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