Gst

[skiper]

Hi I am a new to property Investing and I would like some help on the GST. If I were to buy a house and sell it and say make $20,000 profit on it , and do that 3 times a year would this be classed as a business.
And as I have made more than the $50,000 gst threshold,would l now have to pay gst on on the sale price of any other propertys sold. None of the property's would be new buliding's.

eg sell for $200,000 + 20,000 gst.

Thanks for any help on this.

 

[DaleGG]

Hi

At face value, if each of those houses was your home, then NO, you would not pay tax on it and you would not have to worry about GST.

However, the more you do this, the more chance you have of the tax office arguing that you attempting to run a business from this activity and then they will ask for tax on the profits.

Even then, GST will not paply unless you build a new home as opposed to buying a 2nd hand home.

Dale

Originally posted by skiper
Hi I am a new to property Investing and I would like some help on the GST. If I were to buy a house and sell it and say make $20,000 profit on it , and do that 3 times a year would this be classed as a business.
And as I have made more than the $50,000 gst threshold,would l now have to pay gst on on the sale price of any other propertys sold. None of the property's would be new buliding's.

eg sell for $200,000 + 20,000 gst.

Thanks for any help on this.