Part of your home used for business and CGT

J

Jack_Of_Trad

Guest
I have been informed by my previous accountant that I can write off part of my mortgage as an office expense.I do need to have an office for my business and I use a room in my house for this purpose.
I was also told that when I go to sell CGT would be worked out and I would then pay that.

What I was thinking was if I pay part of my mortgage this way. The property is actually worth less than what the company pays for it can I sell it to me as a private individual and write off the loss? The way I see it the company asset is worth less than it paid and I will just be getting rid of a bad asset.
 
The company wouldn't be buying the house or any portion of it from you. All you would be doing is claiming an expense, in the company, for part of the mortgage interest.

CGT may arise on the part of the house used for the business if/when you ever sell it, as this portion would technically not be your principal private residence.

In my opinion it's more hassle than it's worth.
 
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