|
|
| *Ostroff, Fair and Company>>>Renting & Real Estate |
If i buy a property? |
look to buy a property do it up & sell it when does property tax come in? Say only made 拢10,000 would I still have to pay 40%? Or if I did it as a business with a partner and the profit was low (which will be) say 拢20,000 max are we liable to tax? you pay Capital Gains Tax on the profit but you get an allowance of 拢8000 per year. If you made 10k profit then you would pay tax on the 2000 over the allowance and you pay CGT at the rate you pay income tax so you would only pay 40% if you were a 40% tax payer. However 40% of 2000 isn't bad when you consider that you will only pay about 800 in total in tax for that 10,000 made. If you buy the property with a second person you each get 拢8000 CGT allowance. tax depends on property value they well ask u 2 bay under any circumstances Residential property - purchase price Rate of Stamp Duty Land Tax Up to 拢125,000 - 0% 拢125,001 - 拢250,000 - 1% 拢250,001 - 拢500,000 - 3% 拢500,001 or more - 4% But depending on when you intend to do this, the gouverment are now looking to tax this as a trade and will get the equiverlent of income tax onto your profit of sale, possibly, but this as of yet is not desided as a law or regulation An individuals personal tax allowance is only 拢4,500 ish. If you have a job and do the property part time then you will be taxed on the profit at whichever tax band you fall in, or raise to, with the additional 'income'. If you intend to undertake property renovation on an on-going basis (whether continuing employment or not), consider forming a limited company where profits can be rolled over, dividends can be tax friendly and corporation tax is at 20%. |
| Tags |
| Canada Taxes Australia Taxes Small Business Renting & Real Estate Personal Finance Investing |
Finance Categories--Copyright/IP Policy--Contact Webmaster |