Is it possible to avoid capital gains tax by reinvesting it into another property?Legally.
k
Nope. Not in Australia anyway.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.auTerryw | 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
Thanks for your reply. But its not a profit when you invest it straight away.Surely theres a loophole there!!??
k
Why isn’t it profit? If you buy something and then sell it for more, that is a profit.
If there is a loophole, I’d love to find out too.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.auTerryw | 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 Lei,
As Terry indicated rolling over CGT is not an option with property investment (see comment below).
The capacity to rollover gains is something that exists for business owners provided they meet the necessary guidelines.
Property investors who rent out a property and receive an income (rent) are not entitled to rollover their CG. However someone who is in the business of developing and selling without earning rent can have their properties determined as active assets and as such are entitled to rollover their gains.
On the surface this may sound attractive – but these gains (by a developer) are treated as income and taxed at the appropriate rate anyway. In effect he/she is in a similar situation.
Disclaimer applies – only someone with a passion for Property – no qualification held beyond year 12 economics.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
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