NSW Landtax

Discussion in 'Investment Strategy' started by Clem, 3rd Apr, 2022.

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  1. Clem

    Clem Member

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    Hi
    I have seen quite many post regarding landtax and still wonder.....

    Does land tax payment be claimed as negative gearing towards personal / rental incomes or offsetting CGTs?

    If I am living interstate - can i declare one IP as principal home (in NSW) regardless this IP is producing rental incomes?

    Worth the costs for holding IP(s) in trust name (IPs in NSW and other states)?

    Also I noted an interest fact that ATO only looking into the end of year - does this mean this is the only time that I need to make sure I am not pressing the landtax button?

    Thank you and Cheers
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Land tax is a state based tax, ATO has no say in the matter. ATO only levies capital gains tax which is a separate matter.

    Very few states grant trusts a land tax threshold.

    Census dates vary in different states and has residency requirements.

    Moving properties into trusts may trigger CGT and stamp duty.

    Seek legal & tax advice for your situation.
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Land tax is deductible.
    To be exempt from land tax it must be your principal place of residence. You can't just declare it is such you need to reside there or qualify for the absence rule
    Trusts don't get any tax free threshold in NSW
    Not sure what you mean about the ATO
     
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  4. Trainee

    Trainee Well-Known Member

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    OP, you are not asking the right questions because you don't understand how land tax works.
     
  5. Clem

    Clem Member

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    I got mixed up the state land tax and ATO, CGT and Stamps.....thank you Scott for clarifications

    CGT and Stamps are kinda straight forward but land tax is somewhat confusing to me.

    As I am planning to move to interstate and my family member is continue to stay at my place in NSW - therefore this property will become an my IP that attract Land Tax and CGT if I sell in future. Not sure if I am living outside NSW qualified the absent rule t (Thx Terry)

    Thx everyone
     
  6. Clem

    Clem Member

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    What-IFs

    If I have 2 properties in NSW - one principal and one investment.

    Do I attract land tax if , eg my granny move in (not paying me rent) and I rent elsewhere in NSW?

    Or what if I move to interstate - hence this is no longer my principal home and I lease out for rental incomes? Will land tax after me for not living in this property?
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    If you don't live there and your land holdings exceed the threshold, yes. To be sure, get registered or face penalties.
     
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  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    If you live on the property in a granny flat it could be exempt.
     
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