If you sell your home, you might have to pay capital gains tax come tax season. However, you usually won't have to pay capital gains tax on your primary home. If you have a rental or second property, it is subject to this tax. It is a good idea to keep each of your receipts and records that relate to your home so you don't pay more than you have to. If you decide to sell your home, you won't be held responsible for any goods or services taxes. However, you won't be able to claim capital gains tax on any expenses that you have paid for selling the property either.
If you purchase a property, you may have to pay stamp duty. This is different from state to state though. It is a good idea to check with your local tax office because they are kept up to date on the new rules or regulations. You may be subjected to a levy property tax if you sell your home for a price that lands in a higher tax bracket. Your levy property tax usually doesn't apply to the home you reside in.
Building or Renovating Your Home
If you build or renovate your own home, there are usually no income tax or capital gains tax associated with this process. If the home you renovate or build is for your habitation, it will be exempt from capital gains taxes if you decide to sell. These renovations or improvements also include the surrounding land as long as the land is two hectares or below. These improvements could include things like swimming pools and fountains.
If you lease, own, or rent a piece of property that you use for business, you have to include any income from renting the property when you lodge your taxes. You will also be able to claim income tax deductions. If you sell the property, you will have to pay capital gains taxes on any money you make from the sale of the property. These rules will ensure that you don't pay more than you have to while getting you the tax breaks you deserve.
If you've inherited a property by being the deceased's legal personal representative, beneficiary, or you got the property from the deceased's legal personal representative, it is exempt from capital gains or loss taxes. If you've inherited a property after September 1985, and decide to sell it or dispose of the property, you may have to pay a capital gains tax. If the legal representative sells the property as a means to finish closing the estate, a property gains tax will be applied.
All of these rules and regulations can be extremely confusing. Our staff at Etax Plus understands this. We will work hard to make sure that we lodge your taxes efficiently and correctly. We will take the stress out of your life this tax season and you can get the peace of mind that comes with knowing that our professionals are current on any new rules or regulations. Contact us today, you'll be glad you took that step.