Tax QnA - Property Investment Q&A

    • We are developing land in Western Australia. Currently we have a DIA from the council, but are looking for ways to fund the development. A number of options were suggested to us, but we’d be interested to know their pros and cons from a tax point of view read more

    • My partner and I moved out of my PPOR in Nov 2010 and into a new home in her name. How would capital gains tax be calculated in this instance? Can I lay claim to renting a room from my partner and pay no CGT? read more

    • A property investor from Western Australia wants to subdivide, but is having problems with development approval and is struggling with cash flow. Should he rent out his home while he’s developing his plans, and what effect would this have on his tax situation? Read on to find out how our online forum reacted to his conundrum. read more

    • My wife and I own an investment property in Sydney. We’re renters ourselves, but want to move into the investment property to save more. What would happen if we lived there 3-5 years? Under current tax law, could we turn it back into an investment property after we move out and buy a PPOR? read more

    • I want to buy an investment property with two good friends of mine. We’re thinking of setting up a Joint Venture (JV) arrangement. What’s the best way to establish a JV trust? What should I know before I commit? read more

    • My wife and I want a second investment property. I’m looking at putting it in my name only. Is this beneficial for tax purposes? Also, which investment property type gets the highest return at tax time? Should we get an established house or something that has just been built? I’m not sure which brings back a higher depreciation. read more

    • My investment property has been showing some cracks, so I got it looked at and it turns out that there’s quite a bit of subsidence, and it’s been recommended that I get some underpinning work done. I’ve got a couple of quotes and it looks like it’s going to cost me at least $20,000. How do I make this expense as tax efficient as possible? read more

    • 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