DOES ANYONE PLEASE HAVE A DEFINITION OF A TAX CREDIT. APPARENTLY THEY CAN BE KEPT AND BOUGHT INTO PLAY WHEN NEEDED OR WHEN A PROPERTY IS SOLD, IS THIS FOR THAT PARTICULAR PROPERTY OR ONE IN THE SAME PORTFOLIO
A tax credit broadly speaking allows a taxpayer to offset a tax liability with taxes that have already been paid.
A common example would be where an Australian taxpayer with foreign business interests is taxed on the same income receipt in both Australia and that foreign country. Depending on the circumstances, the foreign tax paid by the oz taxpayer on that income receipt could be offset against the OZ tax liability.
To allow us to assist u with your query... can you provide more details on the "tax credit" you are referrring to?
Is it related to tax credits attached to dividends - which would be relevant in say a scenario where property held in a company entity is sold .... and the proceeds of sale are to be distributed to shareholders?
If you were developing property while you were still working(through a company or personally) and your capital expenditure deductions became more than your income, this would become a tax credit. If you continued until you wanted to relieve some debt ,maybe years later,could these credits be used to lessen CGT .Would credits relate to a particular property or any property.
A project creates $50,000 in tax credits ,if you wanted to keep these properties and sell one you have had for ten years ,can the credits be used to lesson capital gains tax on sale of that property.
>If you were developing
>property while you were still
>working(through a company or
>personally) and your capital
>expenditure deductions became
>more than your income, this
>would become a tax credit.
In this situation, you carry forward a tax loss to the next year if you mean depreciation deductions when you say "capital expenditure deductions"
>If you continued until you wanted
>to relieve some debt ,maybe
>years later,could these
>credits be used to lessen CGT
Maybe. A Capital Gain sits on top of your ordinary income. If your ordinary income = negative then the CGT will be lower than if you had a normal income.
>.Would credits relate to a
>particular property or any
>A project creates $50,000 in
>tax credits ,if you wanted to
>keep these properties and sell
>one you have had for ten years
>,can the credits be used to
>lesson capital gains tax on
>sale of that property.