A couple of points to add. 1) You can claim the property as your principle place of residence for more than 6 years as long as you don't rent it out for more than 6 years. EG: You can move out for 12 years and during that time rented it for only 5 years (other 7 years your parents lived there) and still claim the 6-year rule. 2) You can move back into your property before the 6 years, then move out again and the 6 years starts all over again. 3) There is no minimum 6 to 12 month 'rule of thumb'. The ATO doesn't work with 'rule of thumb" laws. As long as you have 'lived' in the property, the rule will apply.
Thanks for watching - That's a great addition! It highlights the flexibility within the 6-year rule on capital gains tax exemptions for principal residences.
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio
@@hasede-lg9hj How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look her up and send her a message. You've truly motivated me. Thanks.
If the government actually taxed gas, mining companies, and investment property. We wouldn't need to pay any income tax and need to find the loopholes the rich use.
There's another way you can avoid GCT. If you shift between residences and change your PPOR to new one, you have 6 months to sell the old PPOR. Both are treated as a PPOR during this 6 month transition period.
Downside of the 1st point is that you're spending 5 years of rent on the Sunshine Coast, to build equity in your PPOR within 6 years, to sell it. So your PPOR value is going up, but you're burning that gains money on rent. All this effort for a loss, or a small win. 6 years of rent is at least 120k in most places. More likely to be 150k+. You need that PPOR to zoom up at least 200k in 5-6 years for it to be a noticeable win, after sale costs. It's possible, sure. But that's just to zero out on the rent you've spent. May as well go with a different plan tbh.
You can deduct travel expenses... Heres how: Have a trust that owns a company that owns the property. That company then leases/hires a car for you to use to travel to the property to inspect. That is an expense for the company. Making it tax deductible.
If the company owns the property, that means you don’t. So you’ll have to pay rent to the company and pay the investment company tax rate of 30% on the balance of net profits after tax adjustments. You also don’t have access to main residence exemption now because you don’t own it as per your example the company does, so when you sell you’ll have to pay capital gains tax within the company that owns it. Additionally, because the company owns it you will be exempt from the 50% CGT meaning on sale of the property you pay tax on 100% on the gain of sale. Also, travel expenses are non-deducible expenses for investment properties so you still will not be able to deduct it within the company, it will be added back on the tax reconciliation portion of the companies tax return. Also, the hire car income you’ll have to pay tax on in the company. The fact that you’ll have to pay accounting fees to do End of Year financials and tax returns for a company, trust and yourself as an individual will far outweigh you trying to deduct travel expense that are not deductible and now you have to pay CGT. I suggest getting advice from a tax accountant before buying property in a structure because everyone’s circumstances and strategies will be different and you have to weigh the cost/benefit analysis.
What if you purchase the property that you were currently renting? For example, I've been living in my apartment for 3 years, if I purchased the property and then sold it, could I back date the Primary residence to while we were renting?
agreed! We pay our mortgages on after-tax income. We pay fees for buying and selling (stamp duty). We pay land usage taxes for the property we 'own' (rules vary by state) When we sell, they want a huge chunk of the profit!
Not really as you can own more than one and sell it to anyone in the world. I would agree if it was the land is leased and rather remains in the public domain so to speak.
6 yr rule requires you not to own another PPoR, so many get caught on the finer details of the tax act. Any investment based on a tax strategy is extremely dangerous and must be done with full knowledge that property is a long term investment and tax rules generally do not line up.
Even if you sell the property and pay capital gains, you only pay half the tax you would from your income. So that makes for a great investment strategy nonetheless.
valuation for existing property question, do you do it just before you are going to turn it into a IP, or once you contact agent to lease it out? What about if you move in with your girlfriend and she’s owns a property which isn’t under your name? . Also do I have to contact bank to change loans to IP loan? Thanks
When you're thinking about turning your property into an investment property, it's a good idea to get it valued right before you start the leasing process. If you're moving in with your girlfriend and her property isn’t in your name, it shouldnt affect things on your end. If you need advice on your loan check in with your broker and they can advise or hit us up we need a few more details to give advice on that - www.huntergalloway.com.au/
@@geoffrey5161 ok boss man if you as smart as that comment , look at the question and find the answers. You sound like a puppet, you must be in debt , have a house stuck at a job like a slave , how free are you , can you pack up and go anyplace you like ? I doubt it , if you are making comments on you tube .
Excuse my ignorance. When talking about landlord tax deductions. By ‘fully deductible’ do you mean you will get 100% back from the tax office or just a percentage?
When we say that an expense is "fully deductible" for landlords, it means that the entire amount of that expense can be used to reduce their taxable income. This doesn't imply that they will get 100% of the expense back from the tax office. Rather, it reduces the total income on which they will be taxed. The actual financial benefit depends on the individual's tax rate. For example, if they fall into a 30% tax bracket, they effectively save 30% of the expense cost through reduced tax. This is an important distinction in understanding tax deductions.
This is what I assumed. It was wishful thinking on my part as I will be renting out my main residence as I am moving overseas. Now weighing up selling and getting a term deposit/investing money vs leasing out and benefiting from the asset appreciation that I expect will continue in the short while. Thanks for your wonderful and helpful content! @@MortgageBrokerAustralia
Yes, it's definitely possible to opt for an interest-only term during the first 12 months of your mortgage. This approach can offer some breathing room by lowering your monthly payments initially, as you'll only be covering the interest without reducing the principal balance. However, it's important to consider the long-term implications, as your payments will increase once the interest-only period ends and you start paying down the principal. If you're thinking about going this route, contact one of our brokers to discuss further.
this is the highest tax in the world robert Kiyosaki said Hawaii is the same 5 p interest to the agent for rental management 6p to 8 p bank loan and these prices theirs no advantage and land rates up and up shares for me now
You find a business that accepts Perth mint coins as payment. I pay a stripper a 1oz silver coin for a dance. I purchase the coin for $45.00 get a $50.00 dance so I save $5.00. The lady only declares $1.00 because that is the legal tender and pays tax on $1.00 instead of $50.00 (Win Win )
Not just real estate if you have an abn you can purchase assets (related to your buisness operations) and simply accelerated depreciate them over (x) amount of years to get a heap of tax back when those assets are fully depreciated you buy more its money that the gov would have taken from you anyway thats paying your assets off but people have a hard time accepting that you have to spend money to make money youll never save your way into wealth
Actually working Defence Force ( Reserves is Tax free ) only counted as income for Child Support that’s it , which obviously doesn’t apply to most . I worked in Disability and was counted as low income earner ( BUT earned another 30,000 tax free ) bones was got all my Tax back GOLD . I currently own my house , a rental property and just bought another one ☝️.
@@MortgageBrokerAustraliaGreat advice on the 50% return on furnishing a B&B / home stay etc . Our latest investment in the Atherton Tablelands ( above Cairns ) we will live their for 3 months per year - Winter , With the Stamp duty I paid as it’s purchased as an investment ( can I apply to get 3 months worth back - when I live in it ? )
All tax laws and property in Australia is designed to KEEP you in Australia either though chained to large debt or tax laws that makes you lose your primary residence . Prisoners of property
I'm confused I just read this on the ATO Website: To get the full exemption from CGT: you must not have used the dwelling to produce assessable income Isn't renting the property out producing assessable income?
Get rid of negative gearing / get rid of capital gains discount / get rid of AirBnB / reduce immigration Stop land banking / stop money laundering in property / stop land banking... Done!!!! allow the next generation to buy a home otherwise its immigration paying these ridicule prices for the next 3 generations.
. Good presentation .poor continue to become poor if no property.. just pay tax. rich offset tax and become rich. poor service the community more as a result.
Just state it was your intention to move straight in. I did it with mine, rented for 2.5 years and living in now for 4 years so far. When I sell no CGT. I can prove that When I bought the house it was my intention to move in as had spoken and gone through the process of selling the house i was living in, but due to change of work location after the first purchase I can show my intention was to move in straight away but unforeseen circumstances change. Also, how can they prove what your intention was, the burden of proof is on the Tax department
More it can change the owner occupied cgt exemption. If unsure in your situation speak with your accountant to get specific advice. Thanks for watching.
Is that strategy also valid for New South Wells? To my understanding, in NSW if you sell your main house of residency you have to declare the profit that you made in your tax return, so basically you will have to pay full tax on the Capital Gain. An investment property has a 50 % of deduction, so if you made 500K, you will pay tax in the 250K and the other 250K is tax-free.
Hey Luis that’s pretty specific I’d suggest speaking with your accountant to get advice on that or reach out to Nick directly website is in the description. Thanks for watching
I'm not a tax expert, but I can provide some general information. In Australia, the tax implications of selling a property can vary depending on a range of factors, including whether it is your primary residence or an investment property, as well as any applicable tax laws in your state.
ponzi schemes abound in aus. This isn't even the only one. The boomers have positioned themselves in a spot where it becomes political suicide to undo these schemes.
Not paying tax on loss-making investment is definitely legal, but not necessarily wise (especially if you need to use leverage to acquire the loss-making 'asset').
@@hannesRSA I understand newer buildings would have a higher capital deduction, but I still don't see how that would necessarily make newer properties cheaper (it's not like residential property buyers even care about this - most of them make their decision based on other factors instead e.g. income, interest rate, median house price in the area, etc.). I don't see the relevance of the original costs of the buildings either - if both older and newer properties collapse today due to an earthquake or any other reason, wouldn't you have to pay present day construction costs (instead of the original construction costs) to replace them? Your point on the size of the land makes more sense to me, but it has nothing to do with the age of the building itself - the land component is not depreciable in the first place, unlike the buildings.
@@hannesRSA Just because you say there's nothing complex about it, doesn't mean it's valid mate - especially if the context and the subsequent arguments don't pass even a basic sniff test. The thing that is perhaps not complex here is your your attempt to establish a correlation between depreciation/capital deductions to the price of investments, but correlation and causation are not the same thing.
If you wanna pay zero tax, you shouldn’t use any public services or infrastructure like education, public health care, roads, defence, police, emergency services. Some things like the police service do you good even if you don’t directly use them. Same with roads (transportation for the food you buy). So pay tax.
It's important to seek advice from a qualified tax professional or financial advisor who can provide personalized guidance based on your individual circumstances and the specific tax laws and regulations in New South Wales.
None of these laws are in the original writing of our original Constitution, and it is still valid as we have not had a Monarch since Queen Victoria died, that has been lawfully recognized according to the laws and traditions of the Queen Victoria era. So your basis for no taxation as a private individual is up to you to uphold and learn the arguments for so that the private corporation...the Taxation Office cannot enforce their fraudulent principles whereby they collect taxes that are sent directly to their offshore masters, the City of London Bankers, and if you are fool enough, you will pay them. Our corporatised government runs totally on funds, loans that they get from the bankers, and which they get our government to print or account for out of thin air. So we, the people pay for our government money to be printed at our expense, and then the bankers, IMF, etc., gets the credit for original ownership of it and charges interest on it that grows as it compounds each year. We are funding the living and lifestyles of the world's elites if we pay taxes. But GESARA is now in place, and this fraudulent system is stopping and is being replaced with precious metals backed money. FIAT MONEY Is Disappearing now.
So waste your money on rent to avoid paying tax and then sell a property thats definitely trashed after 6 years 😂 How about keep the property for 6 years pay it down p&i and then use the funds to buy a house mortgage free
Nothing in the country is free. The tax system is designed to milk out the low, middle income earner on just about anything and everything. Only the top 1% the richest ppl pay lesser tax in comparison. The scenarios explained to move out from your main residence to a rental property, although it is tax-free, but I wonder why you guys intentionally left out the lost money on paying rent on the second property when you move to a rental property??? While you pay no tax on the sale of the house after 6th year, but you have already paid rent (the lost money) on the second property... wow I wonder why are you promoting such things??? or just promoting your agency for people to come to you???
Typical property spruiker talks....at best they are genuinely oblivious of the costs/expenses associated with their strategy, at worst they are deliberately misleading many aspiring property owners/investors to buy into the property market and make money out of the transactions.....
I think in this scenario they have assumed that you would be paying a mortgage on the home you live in. So when you got and rent a property (depending on where and what kind of property) you are essentially paying the rent INSTEAD of your mortgage. And somebody else pays the rent of your family home and any associated taxes. This does of course vary depending on what you own and where you rent though.
📚 My Free Resource Hub & Education Community 👉 go.huntergalloway.com.au/hub
A couple of points to add.
1) You can claim the property as your principle place of residence for more than 6 years as long as you don't rent it out for more than 6 years. EG: You can move out for 12 years and during that time rented it for only 5 years (other 7 years your parents lived there) and still claim the 6-year rule.
2) You can move back into your property before the 6 years, then move out again and the 6 years starts all over again.
3) There is no minimum 6 to 12 month 'rule of thumb'. The ATO doesn't work with 'rule of thumb" laws. As long as you have 'lived' in the property, the rule will apply.
Thanks for watching - That's a great addition! It highlights the flexibility within the 6-year rule on capital gains tax exemptions for principal residences.
Fact!
What if you rented it out for a couple years and moved into it afterwards?
Like if I rented out a place I own for two years and I move into it as my principal place of residence afterwards would that still apply?
How do you declare a new residence as well?
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio
@@hasede-lg9hj How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Annette Marie Holt is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look her up and send her a message. You've truly motivated me. Thanks.
If the government actually taxed gas, mining companies, and investment property. We wouldn't need to pay any income tax and need to find the loopholes the rich use.
The government already taxes gas and mining. That's where revenue comes from for aged pension, Centrelink,NDIS etc
@@Craigaus adani owe billions to the federal government and mine/natural resources have very low tax rates. So, mines do not pay that much tax.
Tax was created for business owners and entrepreneurs.
Apparently if you pay 1 dollar a day on your mortgage you pay no compound interest, just the principle
and you wouldn't have a Job either that also pay taxes and support the economy...
There's another way you can avoid GCT. If you shift between residences and change your PPOR to new one, you have 6 months to sell the old PPOR. Both are treated as a PPOR during this 6 month transition period.
Great video,unswer on most questions.
Not many videos mention valuation.
Very important.
Than great info.
Downside of the 1st point is that you're spending 5 years of rent on the Sunshine Coast, to build equity in your PPOR within 6 years, to sell it. So your PPOR value is going up, but you're burning that gains money on rent. All this effort for a loss, or a small win. 6 years of rent is at least 120k in most places. More likely to be 150k+. You need that PPOR to zoom up at least 200k in 5-6 years for it to be a noticeable win, after sale costs. It's possible, sure. But that's just to zero out on the rent you've spent. May as well go with a different plan tbh.
You can deduct travel expenses... Heres how:
Have a trust that owns a company that owns the property. That company then leases/hires a car for you to use to travel to the property to inspect. That is an expense for the company. Making it tax deductible.
If the company owns the property, that means you don’t. So you’ll have to pay rent to the company and pay the investment company tax rate of 30% on the balance of net profits after tax adjustments. You also don’t have access to main residence exemption now because you don’t own it as per your example the company does, so when you sell you’ll have to pay capital gains tax within the company that owns it. Additionally, because the company owns it you will be exempt from the 50% CGT meaning on sale of the property you pay tax on 100% on the gain of sale. Also, travel expenses are non-deducible expenses for investment properties so you still will not be able to deduct it within the company, it will be added back on the tax reconciliation portion of the companies tax return.
Also, the hire car income you’ll have to pay tax on in the company.
The fact that you’ll have to pay accounting fees to do End of Year financials and tax returns for a company, trust and yourself as an individual will far outweigh you trying to deduct travel expense that are not deductible and now you have to pay CGT.
I suggest getting advice from a tax accountant before buying property in a structure because everyone’s circumstances and strategies will be different and you have to weigh the cost/benefit analysis.
What if you purchase the property that you were currently renting?
For example, I've been living in my apartment for 3 years, if I purchased the property and then sold it, could I back date the Primary residence to while we were renting?
It's criminal that we accept having to pay any tax for property that we own.
agreed!
We pay our mortgages on after-tax income.
We pay fees for buying and selling (stamp duty).
We pay land usage taxes for the property we 'own' (rules vary by state)
When we sell, they want a huge chunk of the profit!
@@crazyg74 Agree. With a devaluing dollar, it is not even profit. CGT is a tax on keeping up with inflation.
Not really as you can own more than one and sell it to anyone in the world. I would agree if it was the land is leased and rather remains in the public domain so to speak.
What about the rent you paid for 5 years? Potentially paying 250k in rent to save 20k in tax? Am I not seeing something
you've also earned 250k by renting out your own property. I think thats how it works? not sure
Awesome talk. Thank you for valuable info
Glad it was helpful!
nice info, cheers mate
Good tips! Thanks!
Thanks for watching
6 yr rule requires you not to own another PPoR, so many get caught on the finer details of the tax act. Any investment based on a tax strategy is extremely dangerous and must be done with full knowledge that property is a long term investment and tax rules generally do not line up.
Exactly, you need to get individual tax and financial advice before doing anything to do with that strategy.
Wouldn’t the Sunny Coast property become your principal place of residence while you’re renting it?
Even if you sell the property and pay capital gains, you only pay half the tax you would from your income. So that makes for a great investment strategy nonetheless.
I have a house which I rented for 4 years after purchase and then I am moving in, will I have any issue selling it as PPOR?
This is my question too did you get an answer? Would appreciate any answers
6 year rule doesn't apply, because it wasn't already your PPOR when you started renting it.
Yes
what if i dont have a investment property, i am only a sole trader with no gst registered as wel
Thanks for sharing Panch
valuation for existing property question, do you do it just before you are going to turn it into a IP, or once you contact agent to lease it out? What about if you move in with your girlfriend and she’s owns a property which isn’t under your name? . Also do I have to contact bank to change loans to IP loan? Thanks
When you're thinking about turning your property into an investment property, it's a good idea to get it valued right before you start the leasing process. If you're moving in with your girlfriend and her property isn’t in your name, it shouldnt affect things on your end. If you need advice on your loan check in with your broker and they can advise or hit us up we need a few more details to give advice on that - www.huntergalloway.com.au/
Can you find me the law , what page of what book , that says you need to pay tax in the first place ?
Good question. I'll be waiting to see if anyone can answer that without spewing rubbish.
We still waiting ?@@jez0084
Alright, he's got us boys. Better stop taxing them 😂
@@geoffrey5161 ok boss man if you as smart as that comment , look at the question and find the answers. You sound like a puppet, you must be in debt , have a house stuck at a job like a slave , how free are you , can you pack up and go anyplace you like ? I doubt it , if you are making comments on you tube .
@@geoffrey5161 you spewing the rubbish
Excuse my ignorance. When talking about landlord tax deductions. By ‘fully deductible’ do you mean you will get 100% back from the tax office or just a percentage?
When we say that an expense is "fully deductible" for landlords, it means that the entire amount of that expense can be used to reduce their taxable income. This doesn't imply that they will get 100% of the expense back from the tax office. Rather, it reduces the total income on which they will be taxed. The actual financial benefit depends on the individual's tax rate. For example, if they fall into a 30% tax bracket, they effectively save 30% of the expense cost through reduced tax. This is an important distinction in understanding tax deductions.
This is what I assumed. It was wishful thinking on my part as I will be renting out my main residence as I am moving overseas. Now weighing up selling and getting a term deposit/investing money vs leasing out and benefiting from the asset appreciation that I expect will continue in the short while. Thanks for your wonderful and helpful content! @@MortgageBrokerAustralia
yeah i think its the time server your on that is the region, so currency exchange and the exchange rate is a funny thing
If you keep buying and selling homes every 12 months and 1 day and sell for profit and don’t have another day job is it a CGT event upon sale ?
would it be possible to use this method and use a interest only term during the first 12 months?
Yes, it's definitely possible to opt for an interest-only term during the first 12 months of your mortgage. This approach can offer some breathing room by lowering your monthly payments initially, as you'll only be covering the interest without reducing the principal balance. However, it's important to consider the long-term implications, as your payments will increase once the interest-only period ends and you start paying down the principal. If you're thinking about going this route, contact one of our brokers to discuss further.
this is the highest tax in the world robert Kiyosaki said Hawaii is the same 5 p interest to the agent for rental management 6p to 8 p bank loan and these prices theirs no advantage and land rates up and up shares for me now
Thanks for watching 🙌
Financial year.. yeah baby 👶..!!
Let's ballooning our auditing for maximum claims... 😁..
You find a business that accepts Perth mint coins as payment. I pay a stripper a 1oz silver coin for a dance. I purchase the coin for $45.00 get a $50.00 dance so I save $5.00. The lady only declares $1.00 because that is the legal tender and pays tax on $1.00 instead of $50.00 (Win Win )
Rule of thumb 6 to 12 months stay in the main residence.
Thanks !
Before renting....12 months
Is the info in the uploaded video still valid for ALL Aussie states?
Thanks for watching and would be advisable to seek advise from a qualified accountant
Not just real estate if you have an abn you can purchase assets (related to your buisness operations) and simply accelerated depreciate them over (x) amount of years to get a heap of tax back when those assets are fully depreciated you buy more its money that the gov would have taken from you anyway thats paying your assets off but people have a hard time accepting that you have to spend money to make money youll never save your way into wealth
Can you rent out a room while living in the house?
Yeah its possible, just check with your broker it wont affect your first home buyer concessions if you do this immediately after buying a home.
Actually working Defence Force ( Reserves is Tax free ) only counted as income for Child Support that’s it , which obviously doesn’t apply to most . I worked in Disability and was counted as low income earner ( BUT earned another 30,000 tax free ) bones was got all my Tax back GOLD . I currently own my house , a rental property and just bought another one ☝️.
Congrats sounds like youre killing it! Keep it up and building that portfolio
@@MortgageBrokerAustraliaGreat advice on the 50% return on furnishing a B&B / home stay etc . Our latest investment in the Atherton Tablelands ( above Cairns ) we will live their for 3 months per year - Winter , With the Stamp duty I paid as it’s purchased as an investment ( can I apply to get 3 months worth back - when I live in it ? )
great video
Thanks for the visit
All tax laws and property in Australia is designed to KEEP you in Australia either though chained to large debt or tax laws that makes you lose your primary residence . Prisoners of property
yes, I'm increasingly becoming aware of that, as I plan my escape!
I'm confused I just read this on the ATO Website:
To get the full exemption from CGT:
you must not have used the dwelling to produce assessable income
Isn't renting the property out producing assessable income?
www.ato.gov.au/forms-and-instructions/capital-gains-tax-guide-2023/part-a-about-capital-gains-tax/real-estate-and-main-residence#Continuing_main_residence_status_after_d
Owner occupier rules👍
Haha yes indeed
Depreciation of furniture,usually there is no furniture,no fridge etc.
If it’s a furnished property there can be. But ovens and dishwashers are pretty standard.
Thanks
Get rid of negative gearing / get rid of capital gains discount / get rid of AirBnB / reduce immigration
Stop land banking / stop money laundering in property / stop land banking... Done!!!! allow the next generation to buy a home
otherwise its immigration paying these ridicule prices for the next 3 generations.
dude this was great content, was good to hear it all broken down into a simple explanation
Thanks so much Chris appreciate that !
. Good presentation .poor continue to become poor if no property.. just pay tax. rich offset tax and become rich. poor service the community more as a result.
What if you buy a house and rent it out for 5 months then move in ? Then sell it 20 years later ? Is CGT owed on the gain made during the 5 months ?
Just state it was your intention to move straight in. I did it with mine, rented for 2.5 years and living in now for 4 years so far. When I sell no CGT. I can prove that When I bought the house it was my intention to move in as had spoken and gone through the process of selling the house i was living in, but due to change of work location after the first purchase I can show my intention was to move in straight away but unforeseen circumstances change. Also, how can they prove what your intention was, the burden of proof is on the Tax department
What if you move out. Rent for few years then move back in and sell after 5 years?
Might be best speaking with your accountant on that as it's pretty specific advice. Thanks for watching
It resets. It's not accumulative. The government doesn't want anyone to get ahead, hence the ridiculous taxes they develop to stifle your wealth.
It’s never tax free - you have stamp duty and a lot of gov taxes just buying…
Keep in mind some states wave these for first home buyers but still a fair point! Thanks for watching.
Need to prove intent if move within 3 months
Thanks Jacq
So if the house is settled and someone is still renting it for a month because that’s there lease. That’s bad for the new owner?
More it can change the owner occupied cgt exemption. If unsure in your situation speak with your accountant to get specific advice. Thanks for watching.
@@MortgageBrokerAustralia thank you, good info for people trying to educate themselves to become more aware etc
Just a little late. Taxation will end.
Is that strategy also valid for New South Wells? To my understanding, in NSW if you sell your main house of residency you have to declare the profit that you made in your tax return, so basically you will have to pay full tax on the Capital Gain. An investment property has a 50 % of deduction, so if you made 500K, you will pay tax in the 250K and the other 250K is tax-free.
Hey Luis that’s pretty specific I’d suggest speaking with your accountant to get advice on that or reach out to Nick directly website is in the description. Thanks for watching
Tha tax rules for your annual income tax return are Federal, ie they are Australia wide. They apply the same in each state
Think you mean New South WALES!
I'm not a tax expert, but I can provide some general information. In Australia, the tax implications of selling a property can vary depending on a range of factors, including whether it is your primary residence or an investment property, as well as any applicable tax laws in your state.
Here in Kuranda Far North Queensland Australia they might as well throw the tax payers money in the bin. Great road work f*ck wits
Is reason housing is so bad in australia, houses should be for living not investments, comercial property should be the only prpoerty for investers.
ponzi schemes abound in aus. This isn't even the only one. The boomers have positioned themselves in a spot where it becomes political suicide to undo these schemes.
Been looking into negative gearing and the property depreciation as a legal way of not paying tax.
Thanks for watching
Not paying tax on loss-making investment is definitely legal, but not necessarily wise (especially if you need to use leverage to acquire the loss-making 'asset').
@@hannesRSA How does capital works deduction make newer properties cheaper?
@@hannesRSA I understand newer buildings would have a higher capital deduction, but I still don't see how that would necessarily make newer properties cheaper (it's not like residential property buyers even care about this - most of them make their decision based on other factors instead e.g. income, interest rate, median house price in the area, etc.).
I don't see the relevance of the original costs of the buildings either - if both older and newer properties collapse today due to an earthquake or any other reason, wouldn't you have to pay present day construction costs (instead of the original construction costs) to replace them?
Your point on the size of the land makes more sense to me, but it has nothing to do with the age of the building itself - the land component is not depreciable in the first place, unlike the buildings.
@@hannesRSA Just because you say there's nothing complex about it, doesn't mean it's valid mate - especially if the context and the subsequent arguments don't pass even a basic sniff test.
The thing that is perhaps not complex here is your your attempt to establish a correlation between depreciation/capital deductions to the price of investments, but correlation and causation are not the same thing.
If you wanna pay zero tax, you shouldn’t use any public services or infrastructure like education, public health care, roads, defence, police, emergency services. Some things like the police service do you good even if you don’t directly use them. Same with roads (transportation for the food you buy). So pay tax.
Great video!! Are these deductions solely for investment properties? Or can be used for owner occupied?
It's important to seek advice from a qualified tax professional or financial advisor who can provide personalized guidance based on your individual circumstances and the specific tax laws and regulations in New South Wales.
100%, thanks for sharing Jasmine
Just buy a house/unit/townhouse, rent it out for cash and move into mums
Bring Home Prices Down Now!!!! who cares about these special "Mum and Dad investors" the next generation can't even afford
to START a family
So basically I need to be a millionaire to make more money lol
None of these laws are in the original writing of our original Constitution, and it is still valid as we have not had a Monarch since Queen Victoria died, that has been lawfully recognized according to the laws and traditions of the Queen Victoria era.
So your basis for no taxation as a private individual is up to you to uphold and learn the arguments for so that the private corporation...the Taxation Office cannot enforce their fraudulent principles whereby they collect taxes that are sent directly to their offshore masters, the City of London Bankers, and if you are fool enough, you will pay them.
Our corporatised government runs totally on funds, loans that they get from the bankers, and which they get our government to print or account for out of thin air.
So we, the people pay for our government money to be printed at our expense, and then the bankers, IMF, etc., gets the credit for original ownership of it and charges interest on it that grows as it compounds each year.
We are funding the living and lifestyles of the world's elites if we pay taxes.
But GESARA is now in place, and this fraudulent system is stopping and is being replaced with precious metals backed money.
FIAT MONEY Is Disappearing now.
So waste your money on rent to avoid paying tax and then sell a property thats definitely trashed after 6 years 😂 How about keep the property for 6 years pay it down p&i and then use the funds to buy a house mortgage free
Nothing in the country is free. The tax system is designed to milk out the low, middle income earner on just about anything and everything. Only the top 1% the richest ppl pay lesser tax in comparison. The scenarios explained to move out from your main residence to a rental property, although it is tax-free, but I wonder why you guys intentionally left out the lost money on paying rent on the second property when you move to a rental property??? While you pay no tax on the sale of the house after 6th year, but you have already paid rent (the lost money) on the second property... wow I wonder why are you promoting such things??? or just promoting your agency for people to come to you???
Wealthy pay alot of taxes when they spend a $400000 car tax $180000 to import
Typical property spruiker talks....at best they are genuinely oblivious of the costs/expenses associated with their strategy, at worst they are deliberately misleading many aspiring property owners/investors to buy into the property market and make money out of the transactions.....
I think in this scenario they have assumed that you would be paying a mortgage on the home you live in. So when you got and rent a property (depending on where and what kind of property) you are essentially paying the rent INSTEAD of your mortgage. And somebody else pays the rent of your family home and any associated taxes. This does of course vary depending on what you own and where you rent though.
@@coopsnz1 that is why they buy expensive car and so they can afford it
You tenant pays you rent and it should cover or be similar to the rent you pay on your rental.
50+% in Australia pay ff,, all taxes..
There called public self servents ove 3 level of fat fat government
State ,, federal,, local
Stop Bullshit here