Steve recommend to use companies to buy investment properties, which I think make sense. However in his book there is never mention of GST in the number crushing. How does that work ???
no GST on residential property unless new.
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
for other property, you ignore the effect.
You need to keep an eye on the GST when regularly developing (ie: more than once),
Ie; Dual Occ Sub divisions,
Extensions,
Or even major reno’s ……..
My understanding was that you may have to charge some GST on the price you sell for , in these circumstances.
… And that now the ATO considers you to be in the business of developing, then you may also lose the 50% capital gains discount and start paying full income tax rates on all profit…….
Definately worth a chat with accountant prior to planning a deal just in case the tax man steals all your profit.
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