Browse Forums Building A New House 1 Aug 04, 2009 12:04 am Hi, We are building in Victoria and received a Land Tax Notice for the land that we are building our new house on (which was previously an old house that we demolished for the new build). Can anyone confirm whether we should be exempt from paying this land tax? Re: Paying land tax on new home building site?? 2Aug 04, 2009 1:03 am Is it your principle place of residence? If so no there will be no land tax... however if someone else owns it, they may be passing you their bill. If there is land tax applicable you are lucky, It will be a tax deduction Where you are coming from is where you are going to... Re: Paying land tax on new home building site?? 3Aug 04, 2009 1:10 am onc_artisan Is it your principle place of residence? If so no there will be no land tax... however if someone else owns it, they may be passing you their bill. If there is land tax applicable you are lucky, It will be a tax deduction That is the only property we own as we are currently renting during the building stage. So while we are not living there (given it's in construction), can we claim it as our PPR? The other building property isn't an investment property so I am wondering how it is a tax deduction? BTW, thanks for your insights so far Re: Paying land tax on new home building site?? 4Aug 04, 2009 1:29 am Will you be selling either or other? ..PPR Hmmm no, well not until your mail power etc goes there. Get the post office to redirect it to PO. if you pay tax on a property it is possibly a deductable expense. Onc_Artisan Where you are coming from is where you are going to... Re: Paying land tax on new home building site?? 5Aug 04, 2009 9:03 pm Thanks for your responses. I spoke to the State Rev Office today, and they clarified that I have to pay the tax. Once we've moved into the new place for 6 mths however, we will be able to claim back the land tax we paid during construction stage. Re: Paying land tax on new home building site?? 6Aug 04, 2009 9:06 pm too easy Where you are coming from is where you are going to... Re: Paying land tax on new home building site?? 7Aug 05, 2009 12:36 am Rinny - I think if you only own the one property it's fairly straight foward that LT doesn't apply Our issue is that we had started building prior to 31 December when LT is assessed but still had not settled on our previous property therefore technically owned 2 properties for a short length of time. I understand LT is assessed on the 31st of December and applied for the whole year ahead. Can anyone tell me if there is a 'transition period' where an exemption applies? I also rang the SRO and got a bruff woman who simply said 'if you own 2 properties as at December 31 you must pay land tax on one'. . Re: Paying land tax on new home building site?? 8Aug 05, 2009 9:30 am Can I say, paying land tax isn't a bad thing...How much couple of 100? It entitles you to claim a deduction as it is seen as an investment property Onc_Artisan Where you are coming from is where you are going to... Re: Paying land tax on new home building site?? 9Aug 05, 2009 1:30 pm You're right, I hadn't even thought of claiming my LT untill reading this thread. Re: Paying land tax on new home building site?? 10Aug 05, 2009 1:53 pm onc_artisan Can I say, paying land tax isn't a bad thing...How much couple of 100? It entitles you to claim a deduction as it is seen as an investment property Onc_Artisan Love your optimism, but much rather not paying $600 than to whoo hoo at what will at most be a $282 deduction. Building Upside down house in Wantirna VIC Current Stage: Procrastination... it's just all too hard.... Blog: http://thereluctantbuilder.blogspot.com/ Re: Paying land tax on new home building site?? 11Aug 05, 2009 1:56 pm But...if you claim land tax as a tax deduction then it will be classified as a Investment Property and subject to capital gain tax when you sell. Just claim the land tax back when you move in after 6 months. Mrs B Re: Paying land tax on new home building site?? 12Aug 05, 2009 2:12 pm onc_artisan Can I say, paying land tax isn't a bad thing...How much couple of 100? It entitles you to claim a deduction as it is seen as an investment property Onc_Artisan So using your logic - If it's possible to get a deduction for land tax then theoretically it would be possible to get a deduction for any interest paid on any loan ?. Building Upside down house in Wantirna VIC Current Stage: Procrastination... it's just all too hard.... Blog: http://thereluctantbuilder.blogspot.com/ Re: Paying land tax on new home building site?? 13Aug 05, 2009 2:16 pm Well, yes, any loan on an investment property The interest paid on investment loans is tax deductible against the income you recieve (ie usually rent on an established property) Any other taxes you pay on an investment property eg emergency services levy, council rates etc are also tax deductible. Re: Paying land tax on new home building site?? 14Aug 05, 2009 2:18 pm That is right Mrs B easy is best I don't disagree I was covering a few bases just in case (pay CGT at the end and claim interest and depreciation during ) The is not avoiding tax, just using the system as it has been designed. I have probably confused things by adding my feedback... sorry for that, but I have an inquisitive mind Onc_Artisan Where you are coming from is where you are going to... Re: Paying land tax on new home building site?? 15Aug 05, 2009 2:35 pm Just another point... If the first property you buy, is an investment property, and you don't live in it, it won't be treated as your first home purchase. (as I see it *See note below) and you don't claim FHOG in it's modified form, your theoretic first PPR will entitle you to FHOG. Not my system and very confusing, not for the faint hearted and only if you have got your facts straight, with a CGT savvy accountant. I only found this out a few years back. *Please if there is anyone that has anything further on this or contradicts it I will happily eat my words and gracefully not answer any more tax questions Onc_Artisan Where you are coming from is where you are going to... Re: Paying land tax on new home building site?? 16Aug 05, 2009 3:31 pm onc_artisan pay CGT at the end and claim interest and depreciation during I didn't think you could claim these expenses whilst you owned a block of land that isn't income producing. Sure you can claim them when you sell and are up for CGT, but whilst you just own a vacant block that is not earning you an income???? Let me know if I am wrong, as my SIL would be very happy 'chelle We have a hand-over date...15/10...but I won't hold my breath! http://people-in-glass-houses.blogspot.com/ Re: Paying land tax on new home building site?? 17Aug 05, 2009 3:38 pm Investments go up, and sometimes they go down, My train of thought was as a rental... But I will make a call or 2 and get back Where you are coming from is where you are going to... Re: Paying land tax on new home building site?? 18Aug 05, 2009 4:14 pm 'chelle I don't have a definitive answer, sorry So I would have to back out of that one But if land tax is applicable ... Onc_Artisan Where you are coming from is where you are going to... Re: Paying land tax on new home building site?? 19Aug 05, 2009 5:09 pm I think this thread has almost gone the full circle? and I'm still broke Re: Paying land tax on new home building site?? 20Aug 05, 2009 5:32 pm mudmap - you may have thought I was backing out of something else, but was only referring to 'chelles' post tis all 'chelle I didn't think you could claim these expenses whilst you owned a block of land that isn't income producing. Sure you can claim them when you sell and are up for CGT, but whilst you just own a vacant block that is not earning you an income???? If you own a vacant block of land (surely an investment why else ) and it goes up in value and a CGT trigger occurs(sell, transfer, title change etc) you will have a CGT bill or a capital loss if it has goes down. Come on you accountants where are you Onc_Artisan Where you are coming from is where you are going to... the exemption applies only to your principal place of residence - so you must live in it. The 200 days is continuous. You also have to apply for the exemption. 2 11090 If it's your primary residence then there is no tax deductions to be made. 4 101295 For reference, this is the Austlii reference. My take on this is, that they would be breaking the law denying access to a homeowner in Victoria, or their agent from having… 1 4976 |