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  • Profile photo of toniinfantetoniinfante
    Member
    @toniinfante
    Join Date: 2005
    Post Count: 5

    Steve recommend to use companies to buy investment properties, which I think make sense.  However in his book there is never mention of GST in the number crushing. How does that work ???

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    no GST on residential property unless new.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,850

    for other property, you ignore the effect.

    Profile photo of lifeXlifeX
    Member
    @lifex
    Join Date: 2004
    Post Count: 651

    You need to keep an eye on the GST when regularly developing (ie: more than once),

    Ie; Dual Occ Sub divisions,

    Extensions,

    Or even major reno’s ……..

    My understanding was that you may have to charge some GST on the price you sell for , in these circumstances.

    … And that now the ATO considers you to be in the business of developing, then you may also lose the 50% capital gains discount and start paying full income tax rates on all profit…….

    Definately worth a chat with accountant prior to planning a deal just in case the tax man steals all your profit.

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