Julia's Blog
By Julia Hartman
Download PDF There are huge tax consequences of being in a property business. You can hold a property for many years and the ATO can still claim that you purchased it with the intention of resale at a profit. So subject to income tax, no 50% CGT discount and with new or substantially renovated …
Download PDF The taxpayer, Paul Lance, argued that the sale of Sutton Farm as one block with subdivision approval was the sale of a property that he had intended to occupy as his home. He tried to argue that he only applied for the subdivision so his children could live there too. Therefore, he …
(Download PDF) I have got to say the most common question I am asked is whether the ATO would consider a subdivision a profit making business or merely realising an asset. If the land is sold in a profit making enterprise then it is business income, fully taxable, which means no 50% CGT discount. The …
Claiming Property Expense When Not Rented The big question is – “What is Exceptional Damage Beyond Your Reasonable Control?” The answer in the case of the above photo would depend on a DNA test because if your family does the damage, no tax deduction. What a segue! Sounds a lot more interesting than discussing …
Small Developers If your project includes actually constructing a building with the intention of selling for a profit then you must charge GST when you sell. Make sure to ask about a margin scheme clause in the contract to reduce your GST. The same applies if you buy land with the intention of subdividing and …