I own a house which I rent out and earn rental income. I also rent an apartment for a greater value to the rent earned. I am now being hit with Land Tax, and Income Tax Assessment.
Is there anyway I can avoid paying these taxes. Just because it is not my 'real' PPR, it is the only house I own. Doesn't the rent I pay have any weight whatsoever to this?
No way to avoid Land Tax. You are not living in the house you own, it is an investment, so no exemption. Paying rent to live in elsewhere is considered a private expense and not deductible. You are earning rent from renting out the one you own, so you pay income tax. Check that you are receiving all the deductions you are entitled to, like depreciation and interest deductions.
Pushka said: ↑
No way to avoid Land Tax.Click to expand...I believe that your PPOR is Land Tax exempt. Sounds like this is the case.
Pushka said: ↑
No way to avoid Land Tax. You are not living in the house you own, it is an investment, so no exemption.Click to expand...sunshine said: ↑
I believe that your PPOR is Land Tax exempt. Sounds like this is the case.Only when you live in it. MCS doesnt, they rent it out. It is not their PPOR!
SunshineClick to expand...
As we have done this in NSW and QLD, I decided to further research this.
IF this is your PPOR (regardless if you live in it or not as per the 6 year rule) then exemptions can be claimed.
Thresholds are still in place though, so if it is above the threshold some land tax will still be payable. Only 1 PPOR Aus wide can be claimed.
The property needs to meet PPOR criteria as per the above threads. If not then that is a different matter altogether.
Well, as we dont have any idea of time frames that the place was occupied by the owner, and has been rented out we need further info from the OP. In SA, someone has even been charged Land Tax when their home was burnt down in a fire, and they needed to rent while it was being rebuilt. And there was no way they could get out of paying it, yet no way of living in it!
Pushka said: ↑
In SA, someone has even been charged Land Tax when their home was burnt down in a fire, and they needed to rent while it was being rebuilt. And there was no way they could get out of paying it, yet no way of living in it!Click to expand...[email protected]@rds! - I'd pitch a tent on it and the port-a-loo would be already onsite because of the builders.
Propertunity said: ↑
[email protected]@rds! - I'd pitch a tent on it and the port-a-loo would be already onsite because of the builders.Click to expand...Welcome to the SA Government. They are a mean spirited lot, they have no heart! Kevin Foley (Treasurer) is a bully, dont know how he gets away with it. The story above did make the news here. Land Tax will be an election issue next year; Big investment people are starting to look to other states in Australia for large scale commercial holdings; in SA our stamp duty and Land Tax rates are above anywhere else in Australia. One guy was in the paper last week - he has just bought a new commercial complex in Queensland, and said if he had done this in SA, then Stamp Duty would have been over $100k and each year, Land Tax over $300,000 In Queensland it will be half that!