# am I in business?



## abrogard (8 mo ago)

my ex partner and I jointly own four houses.
neither of us is registered for gst
I have an abn (but do no business). she does not.
two of the houses we've got rented out.
are we conducting an enterprise?
if we sell one it'll be gst liable?
should we formalise this arrangement as a partnership or something?
should we be keeping some kinds of records?
what ought we be paying attention to?


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## JandE (Jul 17, 2015)

abrogard said:


> my ex partner and I jointly own four houses.
> neither of us is registered for gst
> I have an abn (but do no business). she does not.
> two of the houses we've got rented out.
> ...


When you sell them you will be liable for tax on the profit you make.

You also need to declare your rental income and expenses on your tax return every year.

Yes, you should be keeping full records. 
You will probably need to use an accountant, to get things just right.


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## abrogard (8 mo ago)

thank you.


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## LogoDesignsAustralia (7 mo ago)

JandE said:


> When you sell them you will be liable for tax on the profit you make.
> 
> You also need to declare your rental income and expenses on your tax return every year.
> 
> ...


Great info!


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## abrogard (8 mo ago)

I have since learned that the law makes it clear that you are not allowed to give taxation advice unless you are a registered Tax Agent. 
And that'd be the reason why all over the place whenever anyone asks questions about their tax and business status and such they get few replies.
It's not that no-one cares and it's not that no one knows it's that everyone is afraid. A bit like the covid insanity.

But one can surely express an opinion about one's own case? Can state what one thinks right now about one's own situation?

I would think so.
Well I've been doing some reading and this is what I think is our position right now:

I believe the ATO considers anyone trading houses for profit to be engaged in an enterprise and if the potential or actual turnover is greater than $75,000 then they will be liable for GST, must register for GST.

Looks like we'd have to charge GST on the sale, being registered for it and all.

BUT it seems all existing residential places are 'input taxed' ( i.e. they've already been taxed gst when they were new) so GST does NOT apply.

We're not planning on selling anything. We're just interested. Come time to sell we'll consult a registered Tax Agent ( that's registered with the Tax Practitioner's Board) and find things out for certain. That should be years away from now.

'Till then that's what we currently think our situation is.


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## abrogard (8 mo ago)

I really think that shows how subjugated we've gotten without even knowing it.
In fact in today's world opening a business is probably harder than it has ever been.
Anyone who's travelled in Asia knows that. The Asians who come to the West, they know that. 
It's about the first thing they learn. Their instinct, with probably poor English and no scholarly qualifications acceptable in the West is to go into business.
And very often the first business choice is the food business.
Where they come from if you can cook and you are prepared to get up early and work hard and spend long hours on the job you can get somewhere.
All over Asia, sidewalk vendors, small cafes etc.
In the west it is virtually prohibited before you start.
Because all food must be prepared in certified food preparation kitchens for a start. And all perishables kept in certified cold storage. Etc..
I won't weary you by continuing but I've only described the very beginning...
See our covid masks. See our loss democracy. We are accustomed to restriction and see it as 'freedom'. One of our government leaders actually told the population they'll 'return to freedom' when the leader decided it was right for them. Nobody protested.


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## omegaman (Dec 5, 2015)

abrogard said:


> my ex partner and I jointly own four houses.
> neither of us is registered for gst
> I have an abn (but do no business). she does not.
> two of the houses we've got rented out.
> ...


The sale of existing (not new) RESIDENTIAL property by individuals is GST exempt
The rental business you operate, is subject to Taxation, as its oncome. Rent is GST exempt.
'COMMON' law in Australia should protect you both. It comes down to whose names are on the Title Deeds for the property.
All Australian Tax paying residents and citizens are required to keep accurate tax records for up to 7 years. YES keep records.
I think you both need to engage a qualified Tax Agent or Accountant to get the right advice.


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