Hi everyone
First time topic poster jumping in (exhale!) and hoping someone can help me in regards to some advice about flipping. We are looking to commence our property investment journey by undertaking flips to build our capital base and we are seeking some advice around the tax implications for this strategy.
I have a basic understanding of CGT however am wondering about other taxation costs that may be applicable on making a profit on the sale of an asset within 12 months of purchase. I have heard that GST can also be applied but really don’t understand this – is someone able to advise please? Am also wondering about the best structure to approach this with – would setting up a company be a better way to proceed?
If posters aren’t comfortable providing this kind of advice in a forum, I’d really appreciate if anyone could recommend an accountant based in Adelaide to speak with. Preferably one that is also an active investor and has a thorough understanding on different property investment strategies.
That wasn’t so hard after all – you may see a few more posts from me yet! :-)
Thanks in advance
If you are doing it in a Company structure then there won’t be a CGT issues as all profits will be charged at the Corporation Tax rate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
By time you take the sales agents fee out, CGT out, and then stamp duty / LMI to buy another one, you may as well just have kept the first one. That’s a lot of money that leaking out of your returns.
Most flipping comes from American authors because their rules and systems are different there.
Here – it works out far better to keep, go to the bank to get an equity topup and use this as deposit on the next. Soon amassing an army of properties that are paying for themselves and propelling you forward.
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
Why not look at a Put & Call Option in a State where there is no Stamp Duty on Options.
Something we are very active on here in Qld with prospective Development sites.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for taking the time to reply guys, much appreciated.
Looks like I need to work through a lot more information yet!HI Richard, can you please explain a little about “put and call” options. I haven’t heard of this and would like to gain a better understanding
Kind regards
Rach
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