About property related taxes and capital gains tax (CGT)…

Did you know that many property investors are unnecessarily paying hundreds of thousands of dollars in extra taxes?

I just wanted to run through a few points about property related taxes so that you can avoid the same mistakes as many other investors.

You may know that the 4 main taxes that will affect you as a property investor are:

• Income tax
• Land tax
• Capital gains tax
• Stamp duty

The most important thing to remember is that you should never try to evade paying tax. However, that doesn’t mean that you should pay more than you have to.

Making sure you don’t pay too much tax is a matter of making sure you structure your property portfolio correctly.

This will mean different things for different people and may include the use of structures such as trusts or companies.

It is important to think about how you will structure your property portfolio before you start buying property, because it can be very expensive if you want to transfer ownership to another person or entity later on.

For instance, if you want to transfer a property into someone else’s name, it’s deemed a sale and you would have to pay both stamp duty and capital gains tax.

Examples like this one show why it’s so important to make sure you get good advice from a specialist property accountant before you get started.

Doesn’t it make sense to spend a few thousand dollars on advice if it means you won’t end up paying hundreds of thousands in extra taxes later on?

But here’s a word of caution…be careful who you take advice from.

You want to make sure that your accountant is a successful property investor themselves.

Don’t be afraid to ask them how many properties they have. If they have nothing to hide they won’t mind telling you. And that goes for any other advisors you may have too.

At the end of the day it’s your money and you’re the only one who’s going to lose out if you don’t be careful whose advice you take.

If you’d like to learn how you can save money on your tax bill legally and ethically, visit:

http://www.RealEstateSecrets.com.au/accountant

Warm Regards

Hans Jakobi – Your Wealth Coach®
Real Estate Secrets