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[Denise]

From: Denise Macadam


Dear Forum,
Can anyone enlighten me in regards to investment stamp duty.
I am to rent out my PPR, will then buy,live in, reno, and sell a few or more houses very frequently.
It has been said I will be charged investment stamp duty if I live in these houses for less than 6 months at a time.
I am in Brisbane, attended Geoff and Paul's last seminar. It was mentioned there you can do this as many times as you like a year as long as you were actually living in the houses. Does anyone have any experience at doing this and were you charged the investment rate for stamp duty further down the track?

Any thoughts are much appreciated.
By the way, are the Wife and Michael really on the box tomorrow or is this a cruel joke?

Kind regards
Denise

 

[DaleGG]

Reply: 1
From: Dale Gatherum-Goss


Hi Denise!

BEWARE!!! The courts are not as silly as we would all like to think that they are. Yes, selling your own PPOR is tax free under the CGT rules, but, if you make a habit of doing it, then, you face the possibility of the tax office treating this as a business (which it effectively is) and therefore taxing you on the profit regardless.

Furthermore, you could face problems with GST as well under the same argument as above, and, the idea of substantially renovating a home causing it to be treated as a new home and therefore falling under the GST rules.

I would have along talk to your accountant about the potential problems.

Have fun and good luck

Dale