NSW - Land Tax question

[kennyboi]

Just like to check if I understand NSW land tax right.

Currrent land tax threshold is 432k

If :
person A has a house with unimproved land valued at 380k and
person B has a unit with unimproved land value at 70k

and we plan to buy another investment house (3rd property) with unimproved land value at 400k.

Should we purchase it under joint name (C=A+B) unequal share A10% (380+40=420)|B90%(70+360=430) to avoid land tax?

Does this unequal share split also applies to income/expense on this property or can it be different?

How exactly do I find out the unimproved land value for the unit?

Thanks

 

[Scott No Mates]

Don't try to outsmart yourself by trying to save a few $ on land tax only to have the higher taxpayer not be able to get the higher % of other benefits but lumped with reduced borrowing capacity.

Check the council rates notice for the land value of the unit.

 

[pinkboy]

And think about longterm what is going to happen when your land valuation goes up and you go over the threashold anyway. As early as next year - then you're stuck with the seemingly 'smart' arrangement.


pinkboy

 

[kennyboi]

Don't try to outsmart yourself by trying to save a few $ on land tax only to have the higher taxpayer not be able to get the higher % of other benefits but lumped with reduced borrowing capacity.

Can you please explain what you mean by reduced borrowing capacity?

 

[Terry_w]

Should we purchase it under joint name (C=A+B) unequal share A10% (380+40=420)|B90%(70+360=430) to avoid land tax?

It doesn't work like this.

 

[kennyboi]

And think about longterm what is going to happen when your land valuation goes up and you go over the threashold anyway. As early as next year - then you're stuck with the seemingly 'smart' arrangement.

pinkboy

That's very true. What else should I factor in?

 

[kennyboi]

It doesn't work like this.

Hi Terry, can you please explain?

 

[Terry_w]

Hi Terry, can you please explain?

Can't be bothered - do a search.

 

[kennyboi]

Can't be bothered - do a search.

I still don't get it. New purchase C (A+B) is < 432k threshold on joint assessment. Only individual assessment applies?

 

[The Fence]

Do....a.....search.....!

Start with NSW OSR website and Land tax.

It's all there in black and white including examples of different structures.

 

[kennyboi]

Do....a.....search.....!

Start with NSW OSR website and Land tax.

It's all there in black and white including examples of different structures.

I had researched OSR. I like to double check my understand from it.

 

[The Fence]

Get a ruling if unsure.

It can be complicated and the OSR website is kinda vague in an specific way.

But really you need to do the sums for Your personal scenario.

Like others had said already, it's a cost to the IP business, tax deductible too!

Oh, and don't try to "avoid" land tax, rather "minimise" it.

 

[Terry_w]

I still don't get it. New purchase C (A+B) is < 432k threshold on joint assessment. Only individual assessment applies?

Here is the answer
http://www.austlii.edu.au/au/legis/nsw/consol_act/ltma1956173/s27.html

Joint owners are assessed as if they are one owner.

Each owner is then assessed separately

 

[Terry_w]

Here is an example of how jjoint owners are assessed
http://www.osr.nsw.gov.au/sites/default/files/file_manager/ofs_lt06.pdf

 

[Scott No Mates]

Terry you're making it too easy.