pre-capital tax investment & new tax laws

Viewing 9 posts - 1 through 9 (of 9 total)

sweetie
Member
@sweetie
Join Date: 2003
Post Count: 26
May 12, 2004 - 10:13 am
Hi Forumites,
I tried to do a search for the above and couldn’t see anything so apologise if this has already been covered.
My in-laws bought some land (both in NSW and QLD)many years ago and they are capital tax exempt. Will the new tax laws in NSW still see that apply or will they now have to pay the 2.25% on capital gains made when they sell their land in NSW after 1 July?
Thanks in advance for your help.[exhappy]
Linda
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
May 12, 2004 - 10:27 am
Hi Linda,
It would appear as if you are confusing two tax regimes.
CGT is a federally levied tax and is based (in loose terms) on the profit you make. Anything purchased before 17th July 1985 (? check this date) is capital gain tax exempt.
The NSW ‘tax’ is a stamp duty levied on the sale price of the property. As I understand it (I’m not from NSW) this will be levied on all properties apart from your own home.
Derek
[email protected]
Property Investment Support Available. Ongoing and never stopping. PM welcome.
sweetie
Member
@sweetie
Join Date: 2003
Post Count: 26
May 12, 2004 - 10:44 am
Thanks Derek,
Just so I am clear about it, they won’t be liable for any CGT to the Federal govt but will be up for the stamp duty (to Mr Carr) if the land is sold after 1 July.
Reagrds,
Linda
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
May 12, 2004 - 11:01 am
Hi Sweetie,
(geez – I don’t even talk to wife like that)
But the short answer is yep – you have got it.
Derek
[email protected]
Property Investment Support Available. Ongoing and never stopping. PM welcome.
Lizzy
Member
@lizzy
Join Date: 2004
Post Count: 230
May 12, 2004 - 12:41 pm
Need we say more.
Liz Wilson
Mortgage Lender
sweetie
Member
@sweetie
Join Date: 2003
Post Count: 26
May 12, 2004 - 10:23 pm
Thanks again Derek. [ohno2]?? Was just trying to be clear in my mind, not cause any offense. Apologies if I did.
Thanks too Liz, always good to have a second opinion.
Regards,
Linda
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
May 19, 2004 - 10:40 am
Linda, I think Derek was referring to calling you ‘sweetie’ rather than anything else[biggrin]
I remember Billfromoz having the same ‘thought’? Esp when his wife asked him who he was emailing?[eh]
Cheers
Mel
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
May 19, 2004 - 10:52 pm
Hi Linda,
(Phew – that sounds much better)
Absolutely no offence taken.
Derek
[email protected]
Property Investment Support Available. Ongoing and never stopping. PM welcome.
sweetie
Member
@sweetie
Join Date: 2003
Post Count: 26
May 20, 2004 - 6:28 am
Hi Mel and Derek,
Duh! Sorry for being so slow. [blush2]
Regards,
Linda