My property journey – Lodging US Tax Returns

If you invest in US property you must also lodge a US tax return.  You do not pay tax twice, as there is a tax treaty with Australia  and the US, so you will get a credit against your Australian tax return.

We have exploring getting US tax returns completed.  You can get Australian companies to do it for you.  Typically $300 per property.  We have, however, managed to source a US based accountant who will be able to to up to 3 properties for USD$395 which is a pretty good outcome and I suspect she will be more across local tax requirements than an Australian accountant.  I will be lodging my first next year, but Stephen is in mid process with his 10 properties.

Cheers for now

Mark

About Mark Taylor….

My property journey – Lodging US Tax Returns

Michael Jones – US Tax Expert

I am pleased to welcome on board Michael Jones onto our expert property panel.

Michael will be supporting our community with US Tax and Accounting.

About Michael Jones….

Michael Jones – US Tax Expert

Accountants: A Valuable Asset

By Chris Gray

Accountants: A Valuable Asset

 Stamp duty savings with off the plan property

By: Whitehouse Capital Partners

Currently NSW property investors that purchase off the plan are entitled to a 100% stamp duty saving for new property costing up to $600,000, provided that construction has not commenced and that contracts are exchanged before 1 July 2012.  Where construction has already started, then there may be a limited stamp duty saving of 25% – see www.osr.nsw.gov.au -home builder bonus fact sheet.  There are terms and conditions that apply and investors should make their own enquiries.

In NSW stamp duty is generally payable within 12 months of exchange of contracts or when the project completes, whichever is the former.

In Victoria there are substantial stamp duty savings available for off the plan property purchases.  The Victorian Government, in an attempt to encourage new development, has reduced stamp duty for purchase of property prior to it being built.  As construction of the development takes place the rate of stamp duty increases incrementally until the building is complete at which point the full rate of stamp duty is applied.  The greatest concession therefore is achieved before construction commences.

Transfer duty (stamp duty) in Queensland is payable for off the plan purchases at settlement.

For more information on other states – see The Office of State Revenue (OSR) web sites for each state.

  Stamp duty savings with off the plan property

NSW Home Builders Bonus

By: Whitehouse Capital Partners

 

 

 NSW Home Builders Bonus

The new Home Builders Bonus is a relief from stamp duty introduced by the NSW government. By doing this the government is aiming to increase the viability of developments, making it easier for developers to obtain finance through pre-sales. It applies from 1 July 2010 until 1 July 2012.

Complete exemption from stamp duty will be given to people buying a property off the plan, prior to commencement of building. It also applies to purchases of land under $400,000 and new homes under $600,000.

By purchasing an off the plan unit prior to commencement of construction, an investor can save up to $22,490. The government is also offering a full exemption for seniors purchasing new homes to be used as their principal place of residence.

If construction has commenced, the Bonus will be reduced to 25% of the payable duty. This rate will also apply to new homes where building has been completed.