Recently we had a client who need to pay $25,000 capital gains tax for a rental property sold last year. We found out that if she has consulted us a few years back, we could have helped her to save this cost. Now that the time has passed, and the property was sold already, we can’t really help her to wind back the clock now to change what happened before.
Tax related to rental properties are very complicated. Most people don’t realize that they are potentially eligible to use the 6 year rule to treat a property as main residence to get exemption on capital gains tax. With the ongoing rental income, their loan structure, ownership percentage, timing on repair and maintenance, could all impact on the deductions they can claim. The important part is, you need to be proactive and plan this before your purchase a property. If you want to learn how to avoid common mistakes, and maximize your tax savings, please watch our online seminar in this link: https://www.youtube.com/watch?v=r1retU_JF0g&t=3418s. From the feedbacks we received, people are saving thousands of dollars on tax after watching this seminar.
If you have any particular questions that are not answered in the seminar, please make sure that you seek help from a experienced tax accountant who is familiar with taxes on rent properties. You can also contact us at 0401 763 675 to find a good tax accountant to help you.