Taxes, don't we just love them? - PropertyInvesting.com

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

KennyC
Member
@kennyc
Join Date: 2003
Post Count: 17
August 13, 2003 - 1:08 pm
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
benson
Participant
@benson
Join Date: 2003
Post Count: 101
August 13, 2003 - 1:53 pm
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.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 14, 2003 - 3:24 am
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
trueblue
Member
@trueblue
Join Date: 2003
Post Count: 142
August 14, 2003 - 3:44 am
Don’t forget the Fire levy as well. This used to be in our insurance policies. Now, you’ll find it in your rates.
KuRCe.
Member
@kurce.
Join Date: 2003
Post Count: 8
August 14, 2003 - 5:47 pm
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.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 15, 2003 - 12:31 pm
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