Every week, Mansion Global poses a tax question to real estate tax attorneys. Here is this week’s question.
Q: Are property taxes in a heritage home in Australia the same as those for a regular home?
A: There isn’t any relevant difference, said Geoff Stein, partner at Brown Wright Stein Lawyers, a tax specialist firm in Sydney.
Heritage homes are those with "natural, indigenous or historic heritage value to the nation," according to the Australian Taxation Office.
If the owner lives on the property, it would not be taxed, Mr. Stein said.
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Mark Mathews, legal practitioner director of Mathews Tax Lawyers in Brisbane, Australia, agreed.
"As far as state-based land tax goes, there is an exemption for your own home," he said. That’s regardless of whether it has cultural significance or not.
And if "you live in it as your principal residence, no capital gains tax is payable on sale; [it’s the] same for both types," he said.
Income taxes are due on rentals, again, whether they are heritage or not.
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"If you rent it out to tenants, you have to declare the income and can claim rental expenses—same for both," Mr. Mathews said.
There may be a deduction for those who donate a heritage property to an organization that is part of Australia’s National Trust network, Mr. Mathews said.
"The general rule is that the amount you can claim as a deduction is the average of two or more written valuations," according to the Australian Taxation Office. Some exceptions apply, and partial gifts are also accepted.
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