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Land Tax valuation threshold is it shared?

Discussion in 'Accounting & Tax' started by fullylucky, 8th Mar, 2016.

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  1. fullylucky

    fullylucky Well-Known Member

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    Types of owner for land tax | Environment, land and water | Queensland Government

    if a property is under two people's name is the land value shared so say

    property A land value = 400k your name
    property B land value = 300k two people's name

    So your under the 600k threshold? so don't have to pay land tax because your individual value is 400+150k = 550k. Which is under 600k?

    is this correct or it doesn't matter both land values are added?
     
  2. Terry_w

    Terry_w Well-Known Member Business Member

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  3. Bran

    Bran Well-Known Member

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  4. Terry_w

    Terry_w Well-Known Member Business Member

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    If a tenant in common owner owned say a 10% interest in the land they would be separately assessed on the value of this 10%.

    This is why one strategy in QLD is to set up 2 separate discretionary trusts (not same beneficiaries) and have the trustees purchase the land as tenants in common.
     
  5. fullylucky

    fullylucky Well-Known Member

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    and in English??
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    About 350 to 500 an hour : ) for decent finance, tax and structure advice - good thing is, implementing good advice can provide a form of recurring income.

    take care with relying on generalist advice,esp so with SROs.

    ta
    rolf
     
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  7. fullylucky

    fullylucky Well-Known Member

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    It's not a hard question surely someone on this property forum would know?
     
  8. Terry_w

    Terry_w Well-Known Member Business Member

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    I answered above.
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    As a well-unknown Azabaijani once told me:

    məxsus ümumi sahibi icarəçi torpaq 10% faiz demək , onlar ayrı-ayrılıqda bu 10% dəyəri qiymətləndirilə bilər. QLD bir strategiya Qəyyumlar ümumi kiracı kimi torpaq satın ( eyni deyil benefisiarları ) 2 ayrı-ayrı müstəqil əmanətləri qurmaq və var , nə bu.

    or was it:


    如果拥有的共同所有者租客说,在土地10%的权益,他们将分别评估了这10 %的价值。 这就是为什么在昆士兰州的一个策略是建立2个独立的全权信托(不一样的受益者),并有受托人购买土地作为共同的租户。
     
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  10. Terry_w

    Terry_w Well-Known Member Business Member

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    Can't get any clearer than that. Seems like you translated what I wrote into Chinese.

    Now I know how to say tenants in common in chinese = 共同的租户 gòngtóng de zūhù
     
  11. That needs good legal advice ! I saw an accountant do that once - Then the client came to me when OSR assessed them as the one owner one threshold. He had a Disc Trust with Mum and beneficiary and another with Dad. However the deed specifically included spouses, relatives etc so potential beneficiaries in both trusts were basically the same. OSR would not accept an amendment to exclude spouses (since it could be changed back later) and considered stamp duty under the QLD indirect duty rule may even apply.
     
  12. Terry_w

    Terry_w Well-Known Member Business Member

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  13. fullylucky

    fullylucky Well-Known Member

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    So in the example...

    property A land value = 400k your name
    property B land value = 300k two people's name

    since your name is on both properties irrespective of who else is on it you are over by 100k since it's 700k? so land tax.
     
  14. fullylucky

    fullylucky Well-Known Member

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    what's tenants got to do with anything. I'm not renting or leasing.
     
  15. D.T.

    D.T. Specialist Property Manager Business Member

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    You'd pay for 400k plus your share of the other, say 150k.
    As discussed above, this can be disallowed if its a badly setup trust, though.

    Not sure if trolling or not, google what tenants in common means.
     
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  16. Terry_w

    Terry_w Well-Known Member Business Member

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    Tenants have nothing to do with it.

    You don't seem to understand the basics about property ownership. Do a search on 'tenants in common' and 'joint tenants'.
     
  17. fullylucky

    fullylucky Well-Known Member

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    What if you don't set up any trust just two people?

    what if you didn't set up trust in the first place? you can't go back in time and set up trust..

    how much does it cost to set it up now post buying it.
     
  18. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    :rolleyes:
     
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  19. 1. Then its not a trust owning the property. Its either TIC (one of two types) or JT. The owner of land is the one assessed - If its owned by thirty people they are a different owner to the block next door owned by twenty of same people. Each state land tax law needs to be known and understood.
    2. Yes you can setup a trust later BUT....It gets very expensive causes it a CGT and duty trigger as well as a likely mortgage concern.

    3. Depends. Costs may include CGT, stamp duty on transfer and deed, ost to setup company and trust, legals, bank fees etc ?

    Tip : Seek advice specific to your concerns. A single misunderstanding would be costly.
     
  20. Davothegreat

    Davothegreat Well-Known Member

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    So here's my hypothetical question...

    If I own 2 IPs in NSW both as joint tenants with my wife and no other IPs in NSW owned in any other form, and the combined land value of those IPs was $500,000, would my wife and I each be assessed as having half the total land value, ie $250,000 each and therefore each of us would be well under the $482,000 threshold or is it assessed to say that "we" exceed the land tax threshold by $18,000 and we each need to pay half of the land tax bill payable on the $18,000 by which we exceed the threshold?