Are You Paying Too Much Land Tax

Are You Paying Too Much Land Tax

As a landlord are you aware that you may be paying too much land tax.

Have you ever considered having the current structure of your landholdings reviewed by a professional such as your accountant?  Would you like a professional opinion as to how you could restructure your land holdings at minimal cost in order to reduce your overall land tax liability.

Do you hold investment properties in a family discretionary trust for asset protection and income splitting?  If so it may be time to review your structure.  Are you aware that for a once-off fee you can have your discretionary trust converted to a fixed unit trust that is compliant for NSW land tax purposes?  These trusts enable the land tax free threshold of $549,000 to be applied to the property holdings of the trust.  Whilst this may not suit everyone's individual circumstances, it is worth investing in finding out how this could apply to you.

Other options for restructuring include transferring commercial property from personal names to a self managed super fund.  Holding property in an SMSF can increase your asset security, reduce tax paid on earnings in retirement and yes the SMSF is also entitled to the land tax free threshold.

Should you wish to discuss any of the above please feel free to contact Fiona Jeff Principal at Quality Accounting.

Fiona Jeff
Principal

(02) 6658 1655 | qualityaccounting.com.au | admin@qualityaccounting.com.au 

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