Join our investing community

My company to lease my IP ?

Discussion in 'Accounting, Tax & Legal' started by chris_qld, 6th Nov, 2010.

  1. chris_qld

    chris_qld Active Member

    21st Jan, 2008
    I have been looking for an office for my new part-time business (mainly on the weekend) for a while with no success. Recently my tenants, who damaged and stole from my investment property, moved out of the IP. I wonder whether it's a good idea for my company to lease the property. Of course I will get a formal lease form filled in.

    As I mentioned above, it's a part-time business, I don't want to pay for the time I don't use if I lease an office from other people. Also I feel reluctant to share office with other people because I have some expensive equipment and I don't want other people to touch it.

    Any thoughts / suggestions would be appreciated.
    Last edited by a moderator: 6th Nov, 2010
  2. GregR

    GregR Reid Consultants

    13th Jul, 2009
    Berwick Vic
    There is nothing to stop you using your own IP. As you are running a business from it presumably generating income, in a sense you do not need a formal lease as the cost is deductible anyway, depending on your structure and whether the cost of the IP is more effective to deduct in your name or the business.

    If you are a sole trader, then it makes no effective difference. If it is a separate company structure, there may be advantages in having a formal lease.

    It really depends on rental income lost compared to what you would otherwise pay in renting elsewhere and the comfort of security of property and privacy.