Hey all, just found this site, and first post.
I'm new to investing and have a question, might be silly but i just don't know.
1. is it possible to set yourself up as a business to buy renovate and sell.
2. is it possible to structure it so the stamp duty and capital gains taxes are paid end of financial year so that you can gain interest from the bank on the amount payable??
sorry if these questions are silly as I'm only new and want to arm myself with information.
thanx for any response.
Gooner.I'm new on here to and to i/p ….. good Q though…hope someone can give some good answers as i to would be interested to know
Yes you can set up a business.
Stamp duty must be paid up front in most states, but CGT can be delayed until about June the year after the tax year ends. However, if you are in the business of trading in property then you may be taxed on the profits as income – not capital gains.
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
Just on Capital gains,how much would i have to pay on IP that i held for 5 years.
Brought property for 280k
stamp duty and reno's cost 37k
Sold it for 468.5k
Do i pay CGains on 468.5k-280k
Or CGains on 468.5 – {280k + 37k}
CheersHi Dan
I would say, estimated, the following:
468.5-280 = profit of 188.5
Less purchase costs of $37k = 151.50k (don't forget other items such as travel to inspect it prior to purchase, agent's fees etc)If held for more than 12 months, then 50% discount = $75,750 capital gain.
This would be added to your income for the year and taxed accordingly.
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
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