Cost if Holding $1 Million Property

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If you need any more information  to Start Online Income Tax Return, or want to know about online tax return 2022,  Tax Return 2022, myGov 2022, myTax 2022 Please contact our Tax accountant on 1300 768 284 or email us at enquiry@taxrefundonspot.com.au or Fill your details online at www.taxrefundonspot.com.au.

 

Sale of Property

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If you have sold any property in last financial year whether it’s taxable or not this is what we are going to discuss. If the property is owned by non-individual can be company, can be trust, can be superfund. So if it is owned by non-individual then it is taxable. You have to pay tax based on the rates but what happens if it is owned by individuals. If any individual may be husband wife together maybe two or three or four people together as a partnership or even a single person owns that property in his or her name and that property sold in last financial year will that be taxable or will that be tax free? Well it depends if that property is used as PPR. PPR means personal place of residence so it has never been rented out and you know person has always lived in that property and he sold. Let’s say he bought for $100,000 about you know 20 years back and now he sold that property for 2 million or you know whatever price. Will that be taxable? No, it won’t be taxable because he has always lived in that property and it is personal place of residence so irrespective of the amount that capital gain is tax free that is not taxable.

On the other hand if it is an investment property if he has received rent from that property then it will be taxable. As you can see it will be taxable, now it depends if it is long term or short term. If the property was held more than 12 months then it will be a long term capital gain. If the property is held for less than 12 months then it will be a short-term capital gain.

For more information on online tax return 2021,  Tax Return 2021, myGov 2021, myTax 2021 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GST and Property

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Tax payers or individuals who want to sell, give on lease or transfer the lease are required to register Goods and services tax (GST) on property by ATO guidelines.

In this stage we usually speak more common words like property instead of using the legal term “real property”.

Property can be defined as:

  • land
  • land and buildings
  • an interest in land, rights over land or licence to occupy land of individual

By ATO term of supply includes sale, lease, transfer of rights, or similar dealings in property.

The GST treatment of property varies depending on the type or its purpose.

Property and registering for GST

You don’t need to registered GST if:

  • If you do your property transactions are for private purposes rather than work purposes, such as constructing your home or selling your home
  • you only receive residential rent from your property rather than business purposes

However,You need to registered your GST, even if you are not a business transactions, 

If you have:

  • The property transaction of your business  and other taxable transactions is greater than GST threshold amount
  • your activities are Considered as ‘entity’ or ‘enterprise’ for example –  If you buy land or house for profit purposes and again resale for more money and only intention to gain profit. So here, one-off property transactions may be related to an enterprise.

If you really want to register for GST, You need to require ABN first.

If you’re required to register for GST you need an ABN.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

What’s the difference between a repair and an improvement?

by Property RepairProperty Tax Deductions

Repairs means fix the damages of a property. for example changing part of a damaged fence.

Whereas maintenance means main the property, For example, oiling a machine.

Any cost incurred in rental property, you are entitled to claim 100 per cent an expenses as deduction.

A capital enhancement occurs when the situation or value of an item is enhanced beyond its original state at the time of obtain.

This would be classified as capital deduction and plant and equipment depreciation over the time.

An example of a capital works deductions could be replacing the kitchen items. If any plant and equipment items are removed and replaced, for example an air conditioner, this will also be considered a capital improvement.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au