Land Tax

Hi all,

How is Land Tax handled for accounting and tax purposes?

As an example, suppose I own 8 properties, and I have a land tax bill from ATO for $10,000 in this (2020/2021) financial year.

Is this land tax amount simply considered an 'expense' for financial year 2020/2021 similar to any other type of expense such as an ongoing regular strata levy and council rate, does it get capitalised, or is it something else?

Thank you.

 

Yeah you can, I wasn't sure at first but my accountant said definitely you can claim it. How he claims it though is not clear to me.

 

It's an expense.

 

Obviously nothing in Sydney.

 

Now, now, he could have a couple of cheapies with that kind of bill.

 

True or several units.

 

Land tax isnt assessed by the ATO. Land tax is a state tax. Did you register or need to register ?

The share of land tax applicable to each assessed property will be deductible in the year it "should be" assessed and be a deductible outgoing. Your state office of state revenue website is a good source of info. The deduction principles are explained in the ATO rental properties guide (search land tax). Arrears cant be claimed when paid. https://www.ato.gov.au/uploadedFiles/Content/IND/downloads/Rental-properties-2020.pdf