Vic Land tax effect on PIA

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From: Apprentice Millionaire


This is totally speculative, given that the changes in land tax have not yet been brought in (and let's hope they do not eventuate, unless there is strong compensation), but I was wondering, Ian, if you were already considering the changes to PIA in the light of possible changes to land tax in Victoria.

In fact, am I right in writing that PIA does not explicitly factor in land tax?

Cheers
Apprentice Millionaire
(aka Jacques in the old forum)

 

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Reply: 1
From: Ian Somers


As Michael has said, land tax is not a specific item in the PIA, but can be accommodated in the rental expenses. The reason is that it is a function of the State in which you live (it is a State tax and varies from State to State) and of your total asset value. Thus it depends on issues that PIA does not know about (i.e. you total asset value). As it is an annual expense and one that is tax deductible, it simply falls into the same category as your other rental expenses. Hence you can change the name of an item in the rental expense list and add the appropriate value.

 

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Reply: 1.1
From: Apprentice Millionaire


Michael, Ian,

Thanks for the info!

Michael, you are a seasoned property investor: how do you use PIA? I must say that I have been doing a lot of 'what if' scenarios, although it has helped me ascertain what my limit is when making an offer for an IP so that it is as close as possible to +ve cash flow.

Cheers
Apprentice Millionaire
(aka Jacques in the old forum)