Property Taxes - What Taxes Do You Pay If You Have an Investment Property?

MIAMI, FL - MAY 10: Miami-Dade mayoral candidate and current Mayor of Hialeah, Julio Robaina, speaks during a forum with other mayoral candidates vying for the open seat during the May 24th general election on May 10, 2011 in Miami, Florida. The former mayor Carlos Alvarez was voted out of office by voters unhappy with a property tax rate increase and the fact that he gave salary raises to county employees during a deep recession. The vote to oust the former mayor made Miami-Dade the most populous area ever to recall a local official. 11 candidates are running for the open seat. (Image credit: Getty Images via @daylife)In Australia there are no investment property taxes as such, however your property sale may be subject to Capital Gains Tax (CGT). The purchase and sale of your property in Australia will be subject to Goods and Services Tax (GST) and your rental income will be subject to Income Tax.
GST is paid on almost everything in Australia at a rate of 10% on the purchase price of your property. GST must be paid on all property that is connected with Australia. With regard to residential property in Australia that is purchased and rented out, the investor can make a claim on input tax credits. That is any GST paid on goods and services purchased to maintain the property can be claimed as input tax credits. These input tax credits can be claimed on a Business Activity Statements (BAS) as a refund and reduce the amount of GST paid overall.
If your Investment Property is held as in a Trust or purchased by a Company, the Trust or Company must register for GST if it's turnover is greater than $75,000 or $150,000 for a non-profit organisation in a financial year. Once registered for GST the Trust or Company must lodge BAS regularly.
If your Rental Income is paid direct to you and the property is not owned by a Superannuation Fund, Trust or Company, then the Rental Income will be taxed at your Marginal Tax Rate. That is, if you pay tax at a top rate of 45 cents in a dollar, your Rental Income will be taxed at 45 cents in a dollar.
Thus the importance of communicating with your Accountant and Financial Planner about your financial situation so they can work out the best ways to purchase your investment property or properties in order to minimise or postpone the amount of Income Tax that you pay. That is, they will consider using a Self Managed Superannuation Fund, Trust or Company to be set up to purchase your properties.
Capital gains tax is another tax you will be subject to when you sell your property. So it is best to sell your property when your income is at a minimum as Capital Gains Tax is paid at your Marginal Tax Rate which is dependent on your income. If your Investment Property is owned for more than 12 months, you may able to receive a 50% discount on Capital Gains Tax.
Now, you are probably thinking is all this worthwhile? If you want to increase your holdings of property investments and you income, and you like the idea of investing in property, this may be the ideal solution for you. There are property investment specialists, Financial Planners, Accountants and Mortgage Brokers whom can assist you with your financial strategies to obtain the best outcomes for you.
Discover How You Too Can Retire Early with a Well Designed Investment Property Plan.

SMSF Strategies: Why Should You Buy Property in a SMSF?

Image by Getty Images via @daylifePeople generally experiment with a wide range of investment options to enjoy high returns on investment. Investments can be in the form of shares, direct property, bonds, assets and insurance schemes. However when you invest money in shares, cash funds or industry operated super funds, you have a fund manager who operates the funds across various sectors depending on the performance of the economic market. SMSF strategies give you the benefit of controlling and managing your own finances invested in the fund without having to depend on others. One big benefit is you get to save on the fund management fees and charges that can be incredibly high on some of the superannuation industry managed funds. If you have adept knowledge about investment options and understand how funds operate then it's a wise decision to invest in a SMSF fund. You will need to devote certain amount of time, money and energy into maintaining and operating this type of SMSF fund. However, the effort is worth it as you get to enjoy higher returns on investment over a long period of time.  
The SMSF fund consists of maximum of four-member trust that play a key role in deciding upon the investment strategies that favor the fund. You should be able to identify the most profitable and consistent investment strategy that will yield maximum returns on your self-managed super annuation fund. If well planned and well managed your SMSF strategies can sometimes outperform what the industry standard has been over the past 15 years or so. Sadly that real rate of return is only about 3% according to an ABC TV report conducted in 1010. It does take time and practice to master the art of investing and managing your own SMSF fund. But it is worth the investment, as you tend to save your income to profit from it at the time of your retirement. There are numerous pension schemes that are available in SMSF funds, which help you enjoy high rate of returns on investments at the time of your retirement. Planning for your future is important and the best way to do it is to invest in SMSF funds as you get to save and invest while you work to enjoy the returns during your old age. Another point to note is that self-managed superannuation fund can be paid out at the time of retirement, disability and death and need not necessarily be wound up at the time of retirement.
Using SMSF strategies are also highly portable and transferable. You can continue contributing towards the fund even if you switch jobs and it can be transferred from one generation to another in the even of death etc. If however, in emergency in case you need some amount of the fund there are options for withdrawing and contributing towards the same. We have a team of experts who can counsel and guide you on the pros and cons of investing in SMSF funds. Always talk to a licensed specialist who operates within the law and is an expert in SMSF strategies.
SMSF Strategies: Why Should You Invest in SMSF? The SMSF fund consists of maximum of four-member trust that play a key role in deciding upon the investment strategies that favor the fund. Learn more visit us at: http://propertyinabox.com.au/australianinvestmentproperties/investor_seminar
Article Source:http://EzineArticles.com/?expert

NRAS Housing: An Effective Income Tax Benefit for Australian Property Investment Buyers

Image by Getty Images via @daylifeNRAS Housing: An Effective Income Tax Benefit to Australian Investors
NRAS Housing, known as National Rental Affordability Scheme, is one of the best ways for property investors to get started buying Australian investment properties.
It is also one of the best ways an experienced real estate investor can grow their portfolio because of the extra $90,000 provided by the Government over the first 10 years of ownership.
The sole objective is to create extensive investment opportunities in the Australian market. Many large-scale investors seek to register under this scheme to derive the benefit of high returns on their direct property investment. The rationale behind NRAS scheme is to:
1. offer tax-free incentive per dwelling to investors who build
2. rent out approved dwellings at a rate that is less than 20 percent of the prevailing market rate for the benefit of poor and moderate income holders.
Through this scheme the Australian government seeks to reduce the tenancy crisis. This scheme is supported by the Queensland government and seeks to increase the supply of affordable rental dwellings in Australia by 50000 by the year 2014. They have already allocated 15000 at the time of writing this article and they expect to have filled the allocation by the end of 2014. In other words, don't hang around and wait forever because you will miss the boat...
This is a fantastic option for all potential investors. Why?
This is the only government property incentive that you get back as tax credits in cash.
Investors reap some amazing benefits through this NRAS housing schemes:
1. positive cash flows,
2. enhanced rental yields,
3. minimum $9140 tax free incentive every year for every property invested in and more than $90000 of tax free incentives over 10 years.
You can enjoy high rentals and attracts tenants locally and internationally due to such reduced rental rates.
However there are certain strict stipulations and guidelines to be eligible to invest in NRAS dwellings. The Australian Government has released a list of locations of properties that are eligible under this scheme. To avail the benefits of this scheme you have to follow the rules and regulations and invest in the region, state that is approved as per the list. NRAS proves to be a commercial and profitable investment for participants of this scheme.
The main distinguishing feature of NRAS housing dwellings and other conventional residential property investments is that NRAS incentive provides better cash return to investors even though the investor is receiving rent at 80% of rental market value.
NRAS encourages only large-scale investors to avail such incentive and hence small-scale individual investors are not eligible for this scheme. For those private and individual property investors who want to take advantage of this NRAS scheme by investing in just one or two properties, we can arrange and facilitate the application process as we involve in large-scale investments.
Our team of professional property investors understands how you can access this scheme and get the most value from it to build your portfolio successfully.
Looking for someone that can provide investment quality service? End of your quest, visit us at http://propertyinabox.com.au/australianinvestmentproperties/nras for more details.
Article Source:http://EzineArticles.com/?expert