When it comes to tax, unless you are a professional, it can be difficult to navigate your way through the maze. But understanding the basic taxation laws and your rights as a property investor is imperative to the success of your investment career. We’ve made it a little easier for you by providing a guide to all the taxation questions you need answered.
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Capital gains tax (CGT) is the tax you pay on profits from selling assets, such as property. You essentially make a capital gain when the difference between the cost of purchasing your property (or another asset) and what you gained from selling it is greater than zero – in other words, you made a profit….
The NSW government has announced plans to get rid of stamp duty for first home buyers, offering buyers to pay an annual land tax payment in its place. The new plan, effective from January 16 next year, means first home buyers in NSW will have the choice of paying the regular lump sum stamp duty…
Are you a Queensland property investor or are you considering investing in Queensland? Well, hold onto your hats! In what could only be described as an extraordinary cash grab, the Queensland Government is making the most astonishing changes to land tax. Once you are over the shock it should have you up in arms, but…
More and more investors, and particularly Baby Boomers, are using their Self-Managed Super Fund (SMSF) as a vehicle to buy an investment property. So I’d like to share some of the most common mistakes I see people making so you can avoid them. 1. Debt Your Self-Managed Superannuation Fund (SMSF) can borrow money to: a) Purchase…
Did you know that you have many options when it comes to deciding the entity that should own your new property? Most property buyers, even seasoned investors, default to simply buying the property in their own name, but this is not always the best and most financially savvy choice. The legally recognised owner of a…
Smart property investors use all the legal tax rules to minimize their cash flow leakage and maximise their deductions. The government encourages property investors to provide accommodation for those who need it by offering them a range of tax benefits. While most investors know about the typical tax deductions, such as interest on loans, repairs and management fees,…
As an investment property owner of around 15 years, I’ve been hit with just about every property tax and expense that you can think of. Hot water systems suddenly stop working. Air-conditioning units and dishwashers that no longer turn on. I once received a sky-high water bill that prompted me to do some digging -…
Protecting your hard earned assets is increasingly becoming a common concern especially with the increasingly number of frivolous claims. For centuries people have used trusts to hold assets so as to protect them and to increase their flexibility. Protecting assets with a trust A trust is useful in this regard as the individual does not…
With the end of financial year coming up soon, I thought I would provide some general tax strategies for property investors to consider: 1. Documentation Keep summaries of all your rental income and expenses. This is much easier if you have your property manager looking after your property where they pay all expenses and collect all income….
Asset protection seems to be a recurring topic with clients over the past few months. Although we are not lawyers the same issues seem to crop up. So let’s have a look at the top issue of asset protection that every property investor should consider: 1. Should I have a will? The answer is yes if…
