From: Kristine .
Did anyone read the article in ‘The Age’ on Sunday headed ‘(Victorian) Land Tax Increase Hits Property Investors’?
Although the focus of the article was centered on the increase in values on the Mornington Peninsula, it was this which caught my eye:
‘Although Mr & Mrs use the home as their principal residence, they are still liable for the land tax (quoted as $41,603 this year!!!) as the property was bought by Mr’s company. … He says that the stamp duty he would have to pay on the sale of the home to himself to avoid the land tax would amount to 10 years land tax.’
This raises the question of properties bought in the name of family companies and trusts. Tax is one of those things which gets you coming or going. You may be able to avoid it in the short term by structuring your purchases in a certain way, but when you are relying on the income in your retirement, will the tax issue come back to haunt you?
Just my thought for the day
Kristine
Did anyone read the article in ‘The Age’ on Sunday headed ‘(Victorian) Land Tax Increase Hits Property Investors’?
Although the focus of the article was centered on the increase in values on the Mornington Peninsula, it was this which caught my eye:
‘Although Mr & Mrs use the home as their principal residence, they are still liable for the land tax (quoted as $41,603 this year!!!) as the property was bought by Mr’s company. … He says that the stamp duty he would have to pay on the sale of the home to himself to avoid the land tax would amount to 10 years land tax.’
This raises the question of properties bought in the name of family companies and trusts. Tax is one of those things which gets you coming or going. You may be able to avoid it in the short term by structuring your purchases in a certain way, but when you are relying on the income in your retirement, will the tax issue come back to haunt you?
Just my thought for the day
Kristine
Last edited by a moderator: