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