Hi i am looking into buying a property and renovating it, then selling it for a profit, is there any minimum time i need to own the property for tax reasons?
Hi,
Double check this before you make any decisions but last time i checked a few months ago, if you have the property for less than 12mths (from contract purch. date, ie not settlement), you pay CGT on the full gain made.
If you sell after 12mths you can get a 50% reduction on the portion of capital gain that is taxed.
Hope that helps.
This also depends if you are living in the property. I understand that you need to live in for 3 months if you intend to renovate before you sell. Check on the ATO website.
Alison
The ATO will consider your intention – if your intention is to buy and sell for profit then the time period that you hold it for is irrelevant – you are in business and you will not qualify for the CGT discount. This will particularly apply if you do a lot of renos. The CGT discount only applies to investments.
I don’t believe that there is a “min time period” of living in the property that means that there is no tax to pay on it.
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