Tax QnA - Property Investment Q&A

    • Q: My current PPOR was purchased in 2007 for $300,000, with a loan value of $200,000. I’m now building a new home that costs $600,000. I’ll use my first home as an investment property, and move into the new house soon. In the meantime, a valuation on my first home came back at $450,000 and my borrowing limit is $360,000. With this in mind, how can I best claim tax on interest payments and what precautions can I take? read more

    • Q: We’ve turned our PPOR into an investment property and moved to a rental property closer to work. My understanding is that we can sell our property within six years of first renting it out and still benefit from its capital gains tax exemption as our PPOR, but what will happen if we decide not to sell and move back into the property to preserve its status as our PPOR? How soon after moving in can we sell without having to pay CGT? read more

    • Q: I want to renovate to sell, and was wondering what structure I should use to make the purchases (company, family, individual, etc.). Are there CGT savings that I can make by using a company structure, as opposed to doing the reno as an individual? I’m also aware that reno to sell is higher risk than buy and hold. Is there a structure I can use that best protects me? read more

    • Q: I built and lived in a house in WA for 21 months, which I am now renting out. I could probably sell the property for about $420,000, though it cost me about $260,000. I have been advised that if I sell my WA property within six years of completion I won't have to pay any capital gains. This sounds too good to be true… is it? read more

    • Q: I want to buy a rental property in NZ and being an Aussie, I’m not sure what tax issues I should be aware of. I also hold a few properties here in Australia so I want to know the tax implications of holding NZ property for both Kiwi and Aussie taxation departments. read more

    • Q: I want to purchase my first investment property, but am unsure if I should buy a new or old property. How will the property’s age affect my tax claims on depreciation? I was told by friends that it’s not worth buying properties that don’t have depreciation benefits. Is this true? read more

    • Q: I’m about to sell my property and am looking for help on my capital gains tax situation. The problem is that I have had people paying board in my own property to bring in some extra cash and need to work out how much of my capital gain on the house is now subject to CGT. read more

    • Q: I own an apartment and have recently rented it out to go back to university. I'm now considering buying another property as an investment property with the vision to move into it after around a year. Can I claim stamp duty and other initial costs on the second unit, as it is an investment property, if I am going to move into it in about a year? read more

    • Q: I’m looking to purchase a three-bedroom house in southern Sydney, with a view to renovating and selling in two or three months for a profit. I’d like to know if CGT is calculated at different tax rates for individuals and corporations. If so, what is the best way to structure the purchase? read more