Does catital gains tax apply to a property that I intend to buy, renovate, sell in less than 12 months?
From vague memory, yes CGT does apply in this case.
However, to get the facts, I would recommend you familiarize yourself with the ATO’s website and find the relevant information there. The ATO website is quite easy to use and you’ll find it pretty quickly.
Don’t make decisions on hear-say, ALWAYS get the facts
SG.
will it be your PPOR ?
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I would say no. CGT only applies to assets held more than 12 months. But the profit will be classed as income and will be taxed the same.
Terryw
Discover Home Loans
North Sydney
[email protected]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
Originally posted by Terryw:I would say no. CGT only applies to assets held more than 12 months. But the profit will be classed as income and will be taxed the same.
TerryW,
Just one correction here, CGT applies to ALL investment or revenue-generating assets, be it property or shares, regardless of length of ownership. If they are held for longer than 12 months, the tax is reduced to 50% otherwise, if sold before the 12 months, the full 100% CGT applies.Bjdj
If the property is your PPOR, then no CGT will be applicable, it is ONLY if you intend to use it to generate income (ie. rent)Cheers,
Jo
correct Jo – qualified by saying that if you are in the business of renovating / developing then no CGT applies and all gains are considered normal income. Usually ‘being in the business of’ would mean your second one – depending on which accountant you speak to.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I agree, no matter what you call it, it is still a tax.
Terryw
Discover Home Loans
North Sydney
[email protected]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
Ausprop,
Rightly so; but then that is your business/ livelihood and as such is really just a matter of what you call it, as TerryW (also correcly) points out.
TerryW,
Agree, wholeheartedly, call it whatever you like, but TAX is TAX; ugly no matter which way you look at it.[glum]
I corrected you, only for the sake of disspelling any possible confusion to those less versed in its (CGT) application.
Cheers, [biggrin]
Jo
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