Can You Get The Wage Subsidy As a Property Investor?

30 March 2020

 

Can You Get The Wage Subsidy As a Property Investor?

 

First Part:  You need to have or be expecting a 30% drop in income and also meet other conditions.

  • If you are giving a rent discount that tenants will pay back later, that isn’t a drop in income!
  • Most residential landlords should not lose 30% of income, so therefore would not be eligible for the subsidy.

 

Second Part:  Are you really entitled to it?  I’ll give some examples to set out who I think is eligible.

  1. Commercial property Investor A has to give 50% discount to tenants for 3 months. The investor’s sole income is from property:
    • If through a Company and getting a shareholder salary, then could apply as an employer under the Company.
    • If using another entity, or getting profits in another way and not through wages, then could apply as self-employed under personal name.
  2. Investor B owns 1 residential investment property. Their main income comes from their day jobs and they have never made a profit from the residential investment property:
    • I don’t think Investor B is entitled to either the employer or self-employed subsidy.
  3. Investor C owns 10 residential investment properties. They receive income from a part-time job and also from the rental properties. They work part-time on the rentals and under 20 hours per week:
    • If through a Company and getting a shareholder salary, then could apply as an employer under the Company.
    • If using another entity, or getting profits in another way and not through wages, then could apply as self-employed under personal name.

 

We will be posting this on our Facebook page https://www.facebook.com/thepropertyaccountant/, so please go to our Facebook page to ask questions or post scenarios and I will try to answer.

 

Kind regards
Ross Barnett

 
 
 
 

Contact Us

For further enquiries or to arrange a free 10-minute no-obligation phone consultation about
your situation and what Coombe Smith One50 Group Property Accountants can do for you, please email, phone or fill out our contact form. 

We'd love to hear from you!