Second Property Advice

[Stacer489]

Hi people,

Currently my wife and I live in a unit which is our PPOR.

We are looking at purchasing another run-down unit with the purpose of renovating and selling off. We do not intend to lease out the unit, just renovate and sell.

Under this purpose would we be liable to pay CGT, even if we do not lease the property out?

Regards,
Tom

 

[Darlogus]

Yes you would pay CGT. The amount depend on what entity you purchase it in, own name, Trust, SMSF ect.

 

[Stacer489]

Yes you would pay CGT. The amount depend on what entity you purchase it in, own name, Trust, SMSF ect.

It would be in both our names.

 

[Aaron_C]

It would be in both our names.

Then if you sell within 12 months you have to pay capital gains tax on the whole lot. Hold it for longer than 12 months and you get a CGT discount of 50%.

 

[Stacer489]

Thanks for your help

 

[GaryT]

Sounds like a business enterprise to me i.e. normal income tax applies with no CGT discount. Also depending on the extent of the renovation may need to consider GST.

 

[Terry_w]

Sounds like a business enterprise to me i.e. normal income tax applies with no CGT discount. Also depending on the extent of the renovation may need to consider GST.

I agree - this is what i was going to post.

 

[HD_ACE]

Hi people,

Currently my wife and I live in a unit which is our PPOR.

We are looking at purchasing another run-down unit with the purpose of renovating and selling off. We do not intend to lease out the unit, just renovate and sell.

Under this purpose would we be liable to pay CGT, even if we do not lease the property out?

Regards,
Tom

there it lies

 

[Barney118]

Live in it for 12 mths and pay no CGT