Investing in today's property market without understanding the impact of taxation could cost you dearly. Similarly, a clear understanding of the numerous associated tax issues could save you substantial amounts of money and fast track you towards financial security. This second edition of Jimmy Prince's bestseller, Taxation Pocket Guide for Australian Property Investors, arms you with the most current taxation information. Ideal for anyone, from the small-time investor to the professional, this book discusses all the major real estate-related tax rulings that professional accountants, lawyers or tax agents need to know. This updated edition contains vital information covering: * the federal government's new 'first home saver accounts' * the cost base of a capital gains tax asset * non-commercial losses * installment warrants purchased by a superannuation fund Also included is a comprehensive list of all the major tax rulings relating to: * claiming an income tax deduction * borrowing expenses * main residence * buying real estate * selling property * non-resident issues About the Author: Jimmy Prince is a fellow CPA Australia and tax specialist. He is former lecturer and tutor in Income Tax Law at La Trobe University and teaches a number of investment courses at the Centre for Adult Education, Victoria. His previous investment titles include: --Making Money the Smart Way --How to Make Too Much Money 2e --sharetrading@home.anytime.anywhere (co-authored with Toula Mantis) --Taxation Pocket Guide for Australian Share Investors Contents 1. Back to Basics Key Issues 1. Location 2. Market price 3. Financing the purchase 4. Ability to attract a tenant 5. Utilising the tax system 2. Benefits and Risks of Real Estate Investment Benefits Risks 3. Taxation of Real Estate Rental income Expenditure Goods and services tax (GST) Capital gains tax (CGT) Cost base Checklist - key Taxation Rulings 4. Borrowing to Buy Real Estate Key issues 1. Capital Growth 2. Income Production 3. Interest rates 4. Cash flow 5. Other taxable income Negative gearing Building wealth with real estate Checklist - key Taxation Rulings 5. Buying Real Estate Key issues 1. Arranging the necessary finance 2. Inspect a number of properties 3. Ownership issues 4. Understanding the legal paperwork You've got to make it happen Checklist - key Taxation Rulings 6. Property Speculation Carrying on a business Goods and service tax Finance the Venture Risk factor 7. Your Main Residence What is a main residence? Land adjacent to your main residence Cannot derive assessable income Cannot own two main residences Temporary absent Selling your main residence Subdividing your property Financing the purchase A winning edge Paying off the mortgage Home loan finance Checklist - key Taxation Rulings 8. Ownership Issues Different ways of owning property 1. In your own name (individual name) 2. Joint names 3. Company structure 4. Trust structure 5. Complying superannuation fund Installment warrants and superannuation funds 9. Selling Real Estate Key issues 1. Incidental costs 2. Taxation issues 3. Steps to selling a property Checklist - key Taxation Rulings 10. Real Estate and Record Keeping Contract of sale Certificate of title Settlement statement Improvements to property Invoices and receipts Rental statements Non-capital costs Depreciation schedule 11. Your Annual Income Tax Return Sources of information How you are taxed in Australia Income tax Capital gains tax 12. Inheriting Real Estate What to do When was the property originally acquired? Deceased's main residence Checklist - key Taxation Rulings 13. Property Trusts What are property trusts? Unlisted property trusts Listed property trusts Property securities funds Issues to consider Appendix A Non-Residents of Australia Rental income Capital gains tax Checklist - key Taxation Rulings **Second Edition 2008