Tax QnA - Property Investment Q&A

    • 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

    • We're thinking of renting out our PPOR and buying another property to live in. The median rent in our area is around $300 per week. What tax concessions can we claim when we convert our home to rental? Is it better to just sell rather than rent it out? read more

    • Q:Hi Eddie, I have a question for you related to one you answered in the October 2009 issue ofYIPregarding capital gains tax. read more

    • We are considering moving into our investment property to cut our spending and improve our short-term savings. What are the tax implications of this? read more

    • My wife and I are looking at carrying out a $100,000 extension to add three rooms to our home. It’s our intention to set up a business housing foreign students from the local university. One of the rooms plus an ensuite would be used exclusively by students for at least five years. read more

    • We’re living in our principal place of residence (PPOR), and bought an investment property (IP) this January. We’ve leased the IP for the past six months and are now thinking about demolishing it and building a new home, which would become our new PPOR. read more

    • We’re planning to rent out our principal place of residence (PPOR) for a couple of years while we go travelling and then move back into it later. We then want to renovate and sell it. What are the applicable taxes in this situation? Can we still claim a capital gains tax (CGT) exemption? read more

    • My husband and I have owned an investment property for about 10 years now. We lived in it for five years and rented it out for three years. My husband has lived in it for the past two years. Do we have to pay capital gains tax if we sell it now? What can we claim as tax deductions? read more

    • 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