All Topics / The Treasure Chest / Taxes, don’t we just love them?

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  • Profile photo of KennyCKennyC
    Member
    @kennyc
    Join Date: 2003
    Post Count: 17

    Hi all!

    Just like to raise a discussion on taxes. When dealing with investment property, there are the following taxes:
    – land tax on the land value component of course!
    – capital gains tax on the sale of the IP
    – income tax on the rental income

    are there any more?
    And can someone please explain how the land tax is taxed? thanks all

    Profile photo of bensonbenson
    Participant
    @benson
    Join Date: 2003
    Post Count: 101

    Land Tax is raised on the unimproved value of land (land content only) owned by a person as at the 30th of June each year. The tax is raised on property you own but do not live in.

    PPOR is exempt. The tax rates are different in each state as are the thresholds and the values are determined by the valuer general (each state may call it something else).

    The property u own in the same name is agreggated so in that sense its a bit like income tax … the higher the value of the land the higher the tax rate.

    Ben.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    What about stamp duty and mortgage stamp duty!

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of truebluetrueblue
    Member
    @trueblue
    Join Date: 2003
    Post Count: 142

    Don’t forget the Fire levy as well. This used to be in our insurance policies. Now, you’ll find it in your rates.

    Profile photo of KuRCe.KuRCe.
    Member
    @kurce.
    Join Date: 2003
    Post Count: 8

    I was of the understanding that land tax is only calculated on the unimproved value of land. ie if you simply own a block of land with no dwelling. Thus this would not apply to an investment property.

    Land tax is calculated on a calendar year based on all land owned as of midnight dec 31st and asesments are issued between March and May each year.

    There is also a zero tax rate threshold of $150k in Victoria. I believe NSW is around the 260k mark.

    Cheers.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    KuRCE

    Land tax is levied on investment propertis (if you reach the threshold), but they only charge you on the value on the land component, nit the buildings or other improvements.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 6 posts - 1 through 6 (of 6 total)

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