Hello there,
Can anyone give me some information on CGT? If I am to reno a property I don't understand how I can reno and sell within say 3-4 months and make a profit considering CGT. Has anyone done this? Cheers, Tina
Tina
CGT is merely a cost of investing.
Remember if you do it regularly enough and it is treated as a business then you are not liable for CGT but it is considered Trading Profit and the tax rate could be reduced depending on the entity you use to acquire it.
By utilising a DFT as the purchasing entity you can at least have some flexibility in deicding on which of the Trustees receives the Capital Gain.
If you buy in a SMSF then tax is payable at 15% and if the contract dates are 366 days apart only 10%.
There are a few ways to reduce your liability.
Richard Taylor | Australia's leading private lender
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