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Hi All,
have bought 2 houses.
One 7yrs ago and another 1ast year as an investment.
Hubby and I had cleaned up and renovated the investment home.
Our plan, along with a friend is to buy a house,
renovate and sell within a 3 mth period and continue throughout the year.
Would this attract CGT?
Direction and or advice would be appreciated.In short, yes you will have to pay CGT if you buy and then sell at a higher price. 100% on the gain if you sell within 12 months, 50% on the gain if you hold it for 12 months.
You will need to speak to your accountant because money spent on renovations I believe can be counted as capital works, and so will raise your original price of the house, which means you won’t have to pay as much tax, but make sure you count it (estimated CGT you will have to pay once you sell) into your figures when you’re working out what price to offer on the house in the first place. Just make sure you check with your accountant to get proper advice. I’m no expert on CGT, all I am relaying is what I have been told.
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