Hi All,
I have read in the USA you can withhold/defer paying tax when you sell a property. Can we do this in Australia? I'm under the impression we can defer the tax through a real estate broker???
Can anyway enlighten me a little more on this topic.
Cheers Mat
KA010 | Raw Profits Pty Ltd
https://lawseo.com.au
Phone MeSorry Mat,
but in Aus you have to submit tax returns every year, and any sales of investments have to be declared, and you pay tax or get back some tax depending on your position.
You cannot defer tax through a broker.
In the USA they have what is called a "1031 Exchange", where you can keep deferring the tax owed on cap gains by reinvesting the profits into other investments after you sell. The tax eventually has to be paid, and it quite often falls on the beneficiaries of the estate that owned the investments after the investor dies.
We don't have that arrangement in Aus.
In Australia you are exempt from Capital Gain Tax if you are selling your PPOR and have not made any deductions to your taxes on your PPOR whilst you were staying in it.
I was really excited a long time ago when I first read the Kyosaki strategy about deferring Cap gains tax. I quickly contacted my accountant who told me we cant do that in Aus! Bugger!
Anyway, forget about that and move on to other strategies…
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