How Property Investors Can Reduce Tax Down To Zero!
Kerry Packer once said, “If anybody in this country doesn’t minimise their tax, they want their heads read”. Coming from one of Australia’s most successful business moguls, that advice is hard to argue with – especially when it comes to property investment!
Those who own real estate are subject to many, different kinds of tax. Some tax is unavoidable. Other kinds of tax are legally, 100% avoidable – or at least able to be reduced substantially.
With the Victorian government recently announcing a rise in the land tax threshold it’s even more important that property investors know where they can and should minimise the tax they pay.
LAND TAX
All states and territories have land tax on land other than your primary place of residence over a certain amount. These amounts differ from state to state with Victoria now leading the charge with the highest amount of land tax in the country.
The best way to avoid land tax as an investor is not to cross the threshold on how much land value you own. There are various ways to do this:
- Buy smaller houses or apartments that have less land value
- Buy in areas where the land is unlikely to increase in value
- Buy properties across a number of states
STAMP DUTY
Once again, the amount of stamp duty you pay will vary from state to state. Reducing the amount of stamp duty you pay can be done if you purchase:
- A cheaper property
- Land with a title to build, but no physical property on site
- A brand new property
CAPITAL GAINS TAX
Every time you sell an asset that has appreciated in value, you pay capital gains tax (CGT). The best way to avoid this, and a leading mantra at Positive Real Estate is…“Buy well, never sell!”
You can avoid paying 100% CGT if you never sell your property.
There are also some other exemptions and reductions relating to the amount of CGT you pay if:
- A property is your main place of residence
- A property is a primary business residence
- You own assets in your super
Talk to the experts at Positive Real Estate to find out if you’re eligible for any of these exemptions.
INCOME TAX
Owning four or five new properties will entitle you to enough reductions in your assessable income that you could decrease the amount of income tax you pay from 37.5% to just 5%.
This will depend on the quality of the properties so ensure you’re getting proper advice from people like the coaches and mentors at Positive Real Estate, who can help you select the right kinds of property for investment.
REDUCE YOUR TAX TODAY
How you navigate through your tax obligations as a property investor can have significant impact on your ability to create wealth.
Learn more at one of our free property investor seminars.
Here, you’ll be equipped with the tools, resources and support to thrive, and not fall behind on your path to financial freedom – whatever that may look like for you.
Book your spot now and find out what you need to know about the current market landscape and how you can make it work for the ultimate wealth creation opportunities.
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