Hi,
Just wondering if anyone might be able to help me out here???
In the past few years, I have sold several investment properties and made a tidy profit.
Now being investment properties, the profit is considered an capital gains event, and the profit is therefore added to my regular income and taxed at my marginal tax rate as income for that year in which it was sold….correct?
So, if a capital gain is taxed as income…can it be considered or used as income when applying for a loan?
Are there any lenders that would allow this?Generally banks won't take it into account as they consider it a one off event, but if you are doing it consistantly you may be able to argue you are doing it as a business. But then you run the risk of them treating you as a commerical client and they may also worry they will just fund you and then you will sell again – discharing their loan.
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
What LVR do you need. You mght be able to do this at 80%?
Two years tax assessment notices are acceptable by some lenders:- even self employed clients. If you can service on this basis you might not need to provide any tax returns or payslips.
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