Landtax on co-owned unsubdivided property?

Hi everyone,

I’ve been reading this forum now and again and I have found it very informative. Thanks a lot for all your inputs. I was wondering if you could help me with this question.

Let’s say a brother and sister own an unsubdivided property (50/50) with one house at the front and one at the back.

My question is:

If the brother lives in the front house and sister rents the back house, who would be liable to pay land tax? Just the sister, or both of them?

 

depends on the state.

If 1 living in the property possibly neither.

 

That was quick. Thanks Terry, the property is in Victoria.

I have another question, if you could help?

If the property was to be subdivided, I guess there would then be two owners of the front house and two owners of the back house, or (I am not sure of how it goes)?

If the brother lives in the front house which is owned by both owners 50/50 and the sister lives in the back house which is also owned 50/50.

Would there be any land tax to pay as you only own 50% of the house? Or would there be no land tax as both properties are occupied?

Also, if the brother lives in front house which is 50/50 and sister rents the back house which is also 50/50. Would there be any land tax to pay in this scenario?

Thank you in advance.

 

You will need to seek specific legal advice on this. I don't know the situation in VIC off the top of my head. In NSW if one owner lived in the property it could be exempt.

 

Unless partitioned. Houses are not title...land is

Many tax issues here incl income tax. CGT. GST and duties plus land tax and main res exemption as well as CGT exemprion

 

Thanks Paul. I see that this is a complex matter. Could you please clarify by what you mean when you say 'unless partitioned'?

There are two houses on one title and I am currently paying separate land taxes on the two properties as if it were on two titles. I do not understand why they do this? Can you shed any insight?