Forum Replies Created
Rob,
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SOME QUESTIONS: the satellite town – how can I find out if this is a good place or not?Look at the population to begin with. If it is more than 15,000 then it is likely to be a good possibility. Is it contracting or expanding?
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– most properties that can be +ve are older – what are the maintance on such places? I was assuming 20% of rent – good idea or not???You need to determine this on a case by case basis. Ask the builder when you get an inspection.
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doubts!!! How to get rid of them? Coffee/drugs/stress pills?It comes with confidence… but there will always be fear because you are moving out of a comfort zone. Growing pains is not just a phrase… it’s a reality.
Have you seen the movie Galaxy Quest? “Never Give Up, Never Surrender!” [
]Congrats on beginning your search, you are among the 1% of people doing something!
Have an absolutely outstanding day.
Bye
Steve McKnight
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Remember that success comes from doing things differently.
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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Greetings!
A BIG Friday hello and welcome to the community [
]Let’s see if I can help…
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My questions are, are there any loopholes on avoiding capital gains?Well, first up, let me point out that you only pay CGT if you sell. I’d imagine that given the equity you have in your home and investment property you’d find securing finance a bit easier – especially on a no-doc or other non-conforming loan. Give Andrew Burgan (mortgage broker – Wizard) a call on 03 9870 4451.
If you feel you need to sell then I think that there’s a great chance you’ll pay less tax than you think.
Here’s why…
I imagine that you own the property in joint names or at least in one name as an individual (as opposed to a company).
This being the case you will qualify for a 50% exemption.
Ideally the would have the following effect:
Capital Gain: $100,000
Split 50:50 means you have a taxable capital gain of $50,000.
Then you both qualify for a 50% capital gains discount meaning that you will be paying tax on only $25,000 (each) of it.
I’m not sure how much other income you have, but, assuming you have none, tax on $25,000 is $3,880.
So, on a gain of $100,000 you might be able to knock it down to $3,880 * 2 (people) = $7,760.
If you own it in one name then you might be able to gift half of it to the other person… this is a bit tricky though and you should seek accounting advice.
Another option is to move into your investment property as your home, live in it for six months or so, and then sell it under the principal place of residence CHT exemption and pay no tax! Once again, seek proper accounting advice before doing anything.
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Someone told me that if you are a property developer ie renovator you can roll over the capital gains on to the next property when you sell, have you heard of this?No. In fact if you trade in property then there is no CGT, instead you pay income on your profits as if it were say a salary or wage.
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I have phoned the ato to ask them how long one has to live in a house in order to avoid paying cgt, but they gave me no clear answer.Because there is no clear answer to give. But you must be able to prove that it was your home and that you lived there.
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How is one suppose to get anywhere in life if the ato sucks all your profits like a vacuum cleaner?Here Here!
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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