Hello everyone. I am a new investor just about to move to Queensland from California. The tax laws are different obviously.
Can someone please tell me that if I buy and sell a property in the same year will I have to pay Capital gains tax? If so, when can I sell a property and not pay Capital gains tax, or do all investment properties have to be rentals?Thank you all in advance.
The only way to completely avoid capital gains tax is if it is your Primary Place Of Residence (PPOR) ie your family home.
If the property isn’t your PPOR and you sell within a year you will have to pay CGT on 100% of the profit. If you hold the property for longer than one year you only pay CGT on 50% of the profits.
The rate at which the CGT is calculated is based on your nominal income tax rate. So if you are in the top marginal tax bracket you will be paying 48.5% tax on you Capital Gains
Yea so there is no 1031 like what you have over in the US.
Thank you for your replies.
No 1031, a lot less money to be made.
Oh well, a better life in Australia…Hey angels, what tax laws does the US have? I will be investing in the US market in the not too distant future?
In Australia we have:
Land Taxes:
– If buying under an individual, there is an exemption of the first $260000 land value on investment property, and after that I think the land tax rate is ~3% on the value of your land (don’t quote me on that
).
– If you buy investment property under a trust, there is no exemption what so ever.Capital gains tax:
-for individuals, 50% of the CG is taken and tax
-for companies, 100% of the CG is taxed at 30%, therefore it is not good to buy under a companyPlease correct me if I made errors
Unfortunstely KennyC I do not know much about Land Taxes in the US, although you are correct with your business taxes. Also consider if you have a business, you can us your business expenses as a right-off for taxes, which is a big bonus.
Hi Angels,
Welcome to Australia.
You may be subject to restictions placed apon you by our FOREIGN REVIEW BOARD.This will be dependant on your status issued to you on arrival.
Their website at http://www.firb.gov.au.will asist you in detail. I reccomend you to their Q&A page,as it might answer some questions simply.
Again welcome and have a happy time investing in Austalia[][][8D]Regards
Bryce Inglis
Time to get a coffee.
).
][
]The topic ‘Knowing the tax laws’ is closed to new replies.
