Taxation and Property Investments

Investing in property can be a lucrative way to accumulate wealth. However, it is necessary to adopt a responsible borrowing strategy in order to gain substantial returns.

Securing the right loan is directly related to your real estate objectives, so it is therefore important that you set up milestones to determine what stage you would like your investment to be in and at what time.

It is also important to take note of practical obligations and taxation requirements to ensure that you are able to budget appropriately.

For example, it is advisable to determine whether or not you will be required to pay capital gains tax (CGT).

To accomplish this, you will need to know the time of the CGT event, how to apply any capital losses, whether the CGT discount applies and whether a CGT event has happened.

You will also need to know how to calculate the capital gain or loss, whether or not you are entitled to any of the CGT concessions for small business and whether there is any exemption or rollover that allows you to reduce or disregard the capital gain or loss.

To get more detailed information on your situation, talk to a Loan Market mortgage broker today.