hi all, hope you are all doin fine and make the money ,,,, i was wondering about CGT and other taxes on this one if you have an investment property and have it over 1 year does the CGT still apply ,,,,is it a lower percentege after more than a year or is it the same no matter how long you have it for , because it is an investment.does the profit from which you make gets added to your income tax mmmmm what goes on
Hi Trying,
If you hold an investment for more than 12 months, then on the sale of the investment you would be subject to CGT. As you held the investment for more than 12 months the rate of CGT that you will pay is 1/2 of your nominal tax rate at the time. The 50% reduction will not change if you hold it for longer. I believe the rules are also different if you hold the investment within a trust or company rather than as an individual.
The other tax that will come into play the more your invest in property and that is land tax. The office of state revenue can supply information on this, it is a sliding scale based on the unimproved land values. There is a deduction for your PPOR as well as a general deduction of $200,000 and a 15% rebate. The maximum rate is 1.8% of the value. This is payable each year.
Cheers,
Stephenthanks birdman for your answer ,at the moment i have just registered as a trust so its still being done ,,,is there a differance from company or trust are they one in the same .
Hi Trying,
Not sure. Should check the implications with an accountant.
All the best
The topic ‘your opinion’ is closed to new replies.
