What ownership costs annually.
WHAT COMMONLY APPLIES
Land use charges or property rates, by state Ground rent Tenement rates, in some areas Capital gains tax, on disposal Income tax on rental income Consent and registration fees, on transfer Stamp duty, on instruments
WHAT TO ESTABLISH
What applies in the state where the property is.
WHY BY STATE
Property charges are largely state-administered and they differ.
WHAT TO DO ABOUT RENTAL INCOME
Declare it and pay tax on it.
WHY THAT NEEDS SAYING
It is frequently undeclared, and enforcement is increasing.
WHAT COSTS MAY BE DEDUCTIBLE
Expenses genuinely incurred in earning the income.
WHAT TO KEEP
Evidence of every cost.
WHAT TO ESTABLISH ABOUT DISPOSAL
What tax applies on sale.
WHY BEFORE SELLING
It affects the net proceeds.
WHAT TO BUDGET ANNUALLY
Recurring charges, which are frequently forgotten.
WHAT ARREARS PRODUCE
Difficulties at transfer, and sometimes enforcement.
WHAT TO VERIFY WHEN BUYING
That charges are paid to date.
WHY
They may attach to the property.
WHAT TO REQUEST
Evidence of payment, before completion.
WHAT TO KEEP
Every receipt, indefinitely.
WHY INDEFINITELY
They are required at disposal, which may be decades later.
WHAT TO ARRANGE
An accountant familiar with property.
