Paying your taxes isn’t something you can skip out on, unless you want to run in with the law. But did you know there are ways you can get tax advantages when you own a home in Australia?
Yes, you might just be able to save up on tax if and when you decide to buy a property. Find out how you can make the most of your Australia home by reading through these tax advantages for homeowners down under.
Tax Advantages of Owning a Home in Australia
Capital Gains Tax Exemption
If you’ve ever tried to sell something, you’re probably already familiar with the term “capital gains.” Capital gains is the profit you make by selling something that has increased in value of the years. If for example, you bought a house 10 years ago at $200,000 and sold it today for $410,000, you can say that you made a capital gain of $210,000. What’s nice about capital gains tax exemption is that you can be sure that you won’t have to pay taxes for the profit you made – that is, you will only be taxed for the original buying price of your house which was $200,000. Everything in excess of that is completely yours.
Home Business
If you work from home or if you run a business with your house as the headquarters, you can avail of tax exemptions and deductions on certain features and functions of your property. Occupancy expenses and running or operational expenses can be claimed, potentially. This particular tax advantage can be claimed by both homeowners and renters who work from home, so make sure you discuss all the ins and outs with your local government tax office to make the most of your savings.
Mortgage Interest Deductions
You can claim the interest charged on your loan when you buy a rental property which means you can make much bigger savings and returns. What’s more, you can also claim the interest you pay on loans that have anything and everything to do with depreciating assets for the property, for repairs, and renovations as well. This spells a whole lot of advantages for people who own take out property loans to purchase their dwellings, because if and when damages and repairs occur, they won’t have to shell out double the value.
