Property Tax Advice

Given that the Australian economy is tied very closely to the property market, it is not surprising that our tax policies and politics are centered in and around property too. If you are reading this article, then you would either be owning a property or may not be too far from owning one. Given the tax complexities involved with regards to doing one thing or the other when investing in property it would go a long way if you did have the property tax advice needed that would help you know what to do, how to structure, own, finance and also manage the investment or development property.  We can also help create a strategy based on the objectives you wish to achieve, as a part of our property tax advice

We can help you with advice pertaining below:

• What to buy and what not to buy – Tax Standpoint
• How to structure the purchase? – Buy via a trust, partnership, joint tenants, tenants in common, Joint Venture, Company and/or in your sole name.
• How to finance? – We can advise about funding, finance and can also organise the finance for you.
• Manage – Management of a development project and/or development property management consultation.
• Tax Advice – As you go.

 

Property Tax Advice – Investment

If you own an investment property or are looking to buy an investment property, it is important to seek out property tax advice from a specialist who has the knowledge and experience to be able to help you receive the most return from your investment property.  Investing in a property can sometimes become quite complex and there are many of factors that you need to consider when making decisions that can have a big impact on how much money you make from your investment property. How much you save on property tax and how much asset protection you receive. Therefore, to get the most out of your investment property, it’s crucial to find a property tax specialist who can look into your circumstances and provide you with expert advice, ensuring that you don’t pay any more property tax than you need to, while receiving the biggest return from your property and protecting your assets.

We list below some of the property taxes you may be paying:

• Stamp Duty – State Tax
• Income Tax – When you sell property.
• CGT – When you sell property.
• GST – Commercial transactions as well as property development transactions.
• Land Tax – When you exceed the state threshold for landholding.

Property Tax Advice – Development Property

Developing a property and the property tax advice associated with property development is a complicated piece of technical tax related literature that required a lot of diligence. While property development success stories are always hyped by property development strategists, it would be mindful to note that many property development projects end up making a loss. In the next few sentences you will see why. When you sell a unit or a townhouse in a new development, you need to pay 10% of the costs of development to the ATO as Goods & Services Tax. So if you sold a townhouse for $770,000. $70,000 of this belongs to the tax office. And then we complain about high costs of property ownership in Australia. Commercial loan rates are nowhere close to residential rates and this is the second biggest killers for development projects.

 

Why choose an accountant, property tax advice specialist?

Choosing an accountant who specialises in property tax advice is critical if you are considering buying an investment property, have an investment property and want to make the most out of it, or if you are looking to expand your investment property portfolio. A property tax specialist can develop the best strategies by providing the property tax advice for your needs and circumstances, such as structuring your assets in the best way so that if something happens, your assets are protected and you won’t lose them, looking out for every opportunity that you could save on property tax, helping you produce the most income from your investment property and helping you grow and build your investment property portfolio.

Why choose A One Accountants?

At A One Accountants, we have a team of passionate, qualified accountants who specialise in property tax advice. We have plenty of knowledge and experience when it comes to investment properties which we can effectively utilise to develop the best strategies tailored to your circumstances. We can work with you to ensure you’re making the most income you can make from your investment property, while considering the future and helping you to expand your investment property portfolio so that you get increased cash flow year by year. We can also help you choose the best structure to protect your assets so that you never have to worry about them in any circumstance, while also giving you the most control over your assets. We will answer and resolve any question or concern you may have relating to your investment property.

Some of the questions we can help you with include:

• Should I live in the property or rent it out?
• How long should I hold?
• Should I sell or hold? Which properties should I sell?
• How can I minimise my property tax?
• What deductions am I eligible to claim for my investment property?
• Is it better to have a positively geared or negatively geared investment property?
• Which is the best structure to protect my assets?
• How much capital gains tax will I need to pay on my investment property?

Some of the discussions we shall be having with you in regards to your next property purchase will be as under:

• Cash flow
• Negative Vs Positive
• Cash Vs Capital
• Yield Vs Growth
• Feasibility
• Market dynamics
• Current Trends
• Structure
• Splits
• Ownership
• Land Tax
• Financing Strategy
• Income Tax
• Over Capitalization

If you would like to know more about how we can help you with regards to your investment property, please do not hesitate to contact one of our friendly staff on 03 8609 1889, or you can email us at info@a1accountants.com.au

Frequently Asked Questions

When should I get property tax advice – before or after buying?

Before, ideally. Getting advice on structure, ownership and likely tax treatment before you purchase gives you far more flexibility than trying to fix a suboptimal structure afterwards.

Does property tax advice cover both investment and owner-occupied properties?

Yes – while owner-occupied homes have fewer tax considerations (mainly around the main residence exemption), we also advise on investment properties, holiday homes, and properties used partly for business.

Can you advise on the best ownership structure for a new property?

Yes – individual, joint, company, trust or SMSF ownership each have different tax, asset protection and flexibility implications, and we help you weigh these against your specific goals.

Do you help with property tax advice for interstate or overseas properties?

Yes – we can advise on the Australian tax implications of interstate and overseas property, including foreign income reporting and any withholding tax obligations.

How much does property tax advice cost?

Fees depend on the complexity of your situation and the scope of advice needed. We agree a fixed fee upfront before any work begins.

Related Property & Business Advisory Services

Buying a property with the help of a professional buyers advocate? See our property buyers advocacy service, and if you’re also considering a business purchase, check our business buyers due diligence guidance.

Wondering how much property tax advice costs, or what a typical property tax checklist covers before settlement? Our specialists near you can walk you through capital gains, stamp duty, and depreciation considerations before you sign.