Ok, the title is a bit messy but it goes like this...
A guy I work with (he's an idiot that I wouldn't normally listen to but you'll see why I'm quoting him in a minute) told me that a RE agent friend of his says that in WA you can only do the "renovate/sell-for-profit" thing, and claim the property as your PPOR, 6 times before the ATO says that any future such deals must be treated as a business/investment and you can't claim the CGT discount that is normally available to PPOR's.
I was under the impression that as soon as you do the renovate/sell-for-profit deal often enough or quickly enough and claim them as PPOR's then you will attract the attention of the ATO and you will lose the ability to claim the CGT discount that would otherwise be available to you because 'you are claiming the property as your PPOR for the main reason of avoiding tax'. This might be the second or third time you do this if you do it in quick succession.
Getting back to the idiot, his story was backed up the other day by an otherwise seemingly very helpful and intelligent RE agent who said exactly the same thing. "6 times is the limit in WA" and the suggestion was that there was no time limit to this. Maybe this agent was his friend???
This just seems unsupportable as how could you stop people doing this over a long time frame like 10 or 15 years?
Anyone able to clear this up for me once and for all?
A guy I work with (he's an idiot that I wouldn't normally listen to but you'll see why I'm quoting him in a minute) told me that a RE agent friend of his says that in WA you can only do the "renovate/sell-for-profit" thing, and claim the property as your PPOR, 6 times before the ATO says that any future such deals must be treated as a business/investment and you can't claim the CGT discount that is normally available to PPOR's.
I was under the impression that as soon as you do the renovate/sell-for-profit deal often enough or quickly enough and claim them as PPOR's then you will attract the attention of the ATO and you will lose the ability to claim the CGT discount that would otherwise be available to you because 'you are claiming the property as your PPOR for the main reason of avoiding tax'. This might be the second or third time you do this if you do it in quick succession.
Getting back to the idiot, his story was backed up the other day by an otherwise seemingly very helpful and intelligent RE agent who said exactly the same thing. "6 times is the limit in WA" and the suggestion was that there was no time limit to this. Maybe this agent was his friend???
This just seems unsupportable as how could you stop people doing this over a long time frame like 10 or 15 years?
Anyone able to clear this up for me once and for all?
