Hi
I don't think the Tax Battles Manual mentioned this but if I set up a limited liability company to act as a property trader to buy, renovate, onsell properties the gains would be classed as profits and taxed at company rates. The question: If I decide to hold any of these properties and rent them out for 12-18 months then sell them do I get capital gains tax relief of 50% or is that only available to individuals holding property? If the 50% rule also applies to companies would the ATO prefer me to setup separate companies for the two activities ie one company for trading and one company for investing? Would there be a problem as far as the ATO is concerned if both business activities were carried out by the same company?
Thanks in advance.
Mike
I don't think the Tax Battles Manual mentioned this but if I set up a limited liability company to act as a property trader to buy, renovate, onsell properties the gains would be classed as profits and taxed at company rates. The question: If I decide to hold any of these properties and rent them out for 12-18 months then sell them do I get capital gains tax relief of 50% or is that only available to individuals holding property? If the 50% rule also applies to companies would the ATO prefer me to setup separate companies for the two activities ie one company for trading and one company for investing? Would there be a problem as far as the ATO is concerned if both business activities were carried out by the same company?
Thanks in advance.
Mike
Last edited: