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Joint owner or separately own?

Discussion in 'Accounting & Tax' started by Ravi, 11th Nov, 2015.

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  1. Ravi

    Ravi Active Member

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    Hi,

    This seems a common question but I can't find answer in previous threads. My question is with regard to land tax.

    Here is my question.

    Would it be better to own property as joint owner or separately?

    Example:
    I and my partner are planning to buy two lands $500k each.
    if we buy both lands as joint owner then total land tax would be : (500,000 x 2 - 432000) @1.6% +100= $9788

    if we buy separately then each can utilize threshold, so each will pay (500000 - 432000) @1.6% + 100 = $1188
    total = 1188 *2 = $2376

    So if buying jointly total tax = $9788
    if buying separately total tax = $2376

    that is a massive difference.

    Is my calculation correct?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Yes (for NSW). But your maths is wrong.

    Also assuming that the ucv = purchase price.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Jointly or individually is the same until you exceed threshold. Then its still the same. :) Your calcs are not correct. Once you exceed threshold in joint property it also adds to respective ownership. This is called secondary assessment. Its designed to stop double dipping.

    You cannot double dip thresholds except by using company or SMSF ownership. Even a unit trust counts to thresholds.

    Using unimproved land value ??
     
  5. larrylarry

    larrylarry Well-Known Member

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