Hi All,
I think the answer to this is obvious, but would appreciate another opinion..
My SMSF will soon buy a commercial property.
The SMSF is registered for GST, but will only own the one property and the rent will be well below $75k/yr.
My business will rent the property.
The business I will operate from this property will be small, with a turnover under $75k.
If I choose to not register this business for GST, then I assume my SMSF will have to collect GST (because it IS registered) and hand over 1/11th to the ATO and the business will not be able to claim it back?
If I do register the business for GST voluntarily, it will be able to claim back the GST paid on rent?
Have I got that correct? I'd rather not see 1/11th of my rent payments disappear from my SMSF to the ATO. If it is the case, I'll have to crunch the numbers to see if it's worthwhile registering the business for GST...
THANKS,
65fbk.
I think the answer to this is obvious, but would appreciate another opinion..
My SMSF will soon buy a commercial property.
The SMSF is registered for GST, but will only own the one property and the rent will be well below $75k/yr.
My business will rent the property.
The business I will operate from this property will be small, with a turnover under $75k.
If I choose to not register this business for GST, then I assume my SMSF will have to collect GST (because it IS registered) and hand over 1/11th to the ATO and the business will not be able to claim it back?
If I do register the business for GST voluntarily, it will be able to claim back the GST paid on rent?
Have I got that correct? I'd rather not see 1/11th of my rent payments disappear from my SMSF to the ATO. If it is the case, I'll have to crunch the numbers to see if it's worthwhile registering the business for GST...
THANKS,
65fbk.