How does the tax office diferentiate between a passive or active investor and what are the tax implications>
if you hold an investment property for over a year and then sell it that is considered a passive investment yes??
but if you sell your property or several properties before a year of ownership do you become a active investor and what are the tax implications ie is it capital gains tax or personal income tax
or you have several investment properties and you sell one or more within a year but keep the others for over a year are you active or passive investor and how is the tax calculated
confused bush investor !!
If you are selling properties as a business then you may be deemed a trader and the properties as trading stock. Then CGT would not apply, normal income tax would instead.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi
If you are treated as a property trader you might have to be wary of GST potentially as well depending on the types of properties.
Remember to this is more speculation that investing – higher risk.
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