Melbourne, Australia-----Whenever a person buys a property, somewhere in his mind, he has the thought of selling it in times of his need or for gaining profit over a period of time when the resale value of the property has risen to a considerable level. For an individual's property for sale, he will also have to pay the taxes on the profit he is making by selling his property. During the process of selling the property, the owner will have to provide all sorts of information regarding his property to his conveyance. The information includes the owner's IRD number along with the identification number of the taxpayer which is equivalent to a citizen's IRD number in any country.
The three things that are taken into consideration while extracting the tax from the owner is the intention of the owner when he had previously bought the property, the history of the owner's buying and selling of property and whether the owner is linked with the industry of property. The idea of property for sale stays in a person's mind while he buys it. This is because it is a common fact that the value of the property will increase with time. It should be kept in mind that whenever a person buys a property with a strong intention of selling it later on, he is bound to pay the taxes on the profit which he has gained from selling it.
The property for sale becomes liable for paying tax if the property is sold within 10 years of its purchase and also if the owner of the property was a developer or a dealer while buying the property. This does not take into account whether the property was purchased as a part of the property business of the owner. One also has to pay the tax for selling the property within ten years of the work of building which has been done on the property. If the owner is associated with a person belonging to the property industry, he will have to pay tax on almost all or some of the transactions of his property, even if he is not a property dealer personally or a builder or a developer.
There are times when the circumstances change, but the intention of the owner while buying the property remains the same. A property for sale may also be a rental property which may be sold all of a sudden for a number of reasons. The owner of the rental properties may also think that the time has come to sell his entire portfolio of the rental properties. If the properties are sold after a short period of time of their purchase, all the property dealings of the owner become taxable. One usually enters the property industry as the returns are much higher when the properties are sold and bought than the rentals which the properties provide. Every profit on the sale of the property of the owner becomes taxable as he then becomes a dealer.
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Company overview :
Dingle Partners is a leading Melbourne Real Estate Agent. We specialise in Melbourne property for sale, rental properties and investment properties in the inner Melbourne suburbs.