If my occupation were termed to be that of say “property investor or developer” on a loan application, would I be able to include the capital growth of my properties in the past 12 months as income for that year?
forwards ever
backwards never!!Hi wullah
If your ATO defination was a property investor / developer then the realised gain made on the sale on development or refurbishment would be actually be considered as trading income and not capital gain.
This has its advantages and disadvatages.
For lending purposes you would need to demonstrate a regular pattern of such income i.e 2 years Tax returns and P & L Statements and then you may find that the average lender wanted to treat each application as development funding rather than a residential investment loan.
A paper capital gain made on your IP’s is not treated as income however you would be able to borrow against the valuation which would undoubtedly reflect such capital gain
Guess my question to you would be Why would you want to include it.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
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