Tax QnA - Property Investment Q&A

    • I’m an Australian citizen and I live and work overseas and don’t own any property in Australia, although I have owned property before and have used the First Home Owner Grant and do not file a tax return as I pay tax in the country I work in. If I purchase a house in Australia as my principal house of residence and rent it out in preparation for my return to Australia, what tax implications will this have for me? read more

    • We bought an apartment in Darwin in June 2005 for $250,000 (purchase price) and moved out of the property in February 2008. We now want to sell the property to buy another house in Perth. A property appraisal for $400,000 was conducted around December 2007. The property has again been rented out in February 2008 until now. Are we liable for capital gains tax? What would the capital gains tax be? read more

    • I'm currently budgeting for the next financial year's expenses and would like to know what expenses can I prepay for my IP. If we move into this IP and make it into our PPOR, can we claim the prepaid expenses back? How does prepayment work? read more

    • I own an investment unit on the Sunshine Coast worth about $360,000 and have been renting in Brisbane. I’m thinking about selling the unit so I can buy my first home closer to where I work. I bought the unit about five years ago for $250,000 so I guess I have about $110,000 in capital gains, before sale costs. I’d rather put my money towards the house deposit than pay the CGT. Is it possible to borrow from the bank to pay the CGT and then claim this as a tax deduction? read more

    • I have lived in my own house for four years. I am now planning to buy another property to live in and rent the existing one. My current house cost me $325,000. A real estate agent indicated it would be currently worth $450,000. If I rent it out now and sell it in the future, on which value will the CGT be calculated – the original $325,000 or the present value? Should I get a valuation in writing before I rent it out? read more

    • My wife and I would like to borrow 90% LVR to buy an investment property. We're thinking of using some equity from our PPOR to pay for the 10% deposit and other costs. I'm the higher wage earner, so should I claim all the costs including LMI? What's the most tax-effective way to structure the investment property loan? read more

    • I purchased a house with my father in 1989 for $100,000 but I moved out in 2000. He wants to sell the house and is hoping to get a minimum $400,000. Once he buys a new unit, which will cost $350,000, and pays for the real estate fees and so on, he will have about $50,000 left - roughly what sort of capital gains tax I would get charged? read more

    • It is a bit of a trend lately for property owners to set up hybrid trusts in which to manage their properties. The question remains: What are the benefits in doing so? read more

    • Eddie Chung explains how the ‘marriage breakdown roll-over provision’ works and what investors can do to avoid paying hefty capital gains tax during their divorce settlement. read more