Published on 16 Oct 09
by TASMANIAN DIVISION, THE TAX INSTITUTE
Property transactions usually cause the greatest headaches for property investors and their advisors. Even the simplest act of subdividing land, building and selling residential premises, can give rise to different taxation outcomes depending on the circumstances. This paper examines some of the common tax issues that property investors can sometimes overlook, including:
- when does a disposal of property give rise to a capital gain?
- when does a property investor ‘cross the line' to property developer?
- what are the key indicators that differentiate between passive investment and active development?
- what differentiates a repair as opposed to an improvement, and why does it matter?
- when is the joint ownership of land a tax law partnership?
- when are expenses for the holiday home deductible?