GST on Flipping properties

Discussion in 'Investment Strategy' started by Leslie, 22nd Nov, 2019.

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  1. Leslie

    Leslie Well-Known Member

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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    She wasn't flipping, it was subdivision hence a GST issue.
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    An enterprise. GST would have applied

    "Semmens ignored advice she did not want to hear" I think this sort of thing happens a lot
     
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  4. Lindsay_W

    Lindsay_W Well-Known Member

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    What's to be said - can only blame herself for where she's en
    Only has herself to blame
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    But I bed she is blaming others!
     
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  6. Lindsay_W

    Lindsay_W Well-Known Member

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    No doubt !
     
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  7. sash

    sash Well-Known Member

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    Flipping properties which are existing and now changing the structure significantly..then unlikley to attract GST so long as you are not conducting an commercial enterprise. If you do a lot of year then you are conducting a commercial enterprise.

    The issue with women was she as developing ...and if you on sell for a profit you need to pay GST as she as doing it on a commercial basis. There are ways to minimize GST under the margin scheme. Don right you will pay 3-6%. GST
     
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  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    10 properties in 6 years. She only has herself to blame. Not only do substantial renovations attract GST but this was clearly an enterprise.
    The ATO would have given her multiple times to pay the bill which would avoided her going to jail. I'm guessing she doesn't have any of the profits left to pay the bill and so figured the only option was to fight it to the death and didn't win.
     
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  9. Propertunity

    Propertunity Well-Known Member

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    [​IMG]
     
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  10. Westminster

    Westminster Tigress at Tiger Developments Business Member

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  11. Leslie

    Leslie Well-Known Member

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    Thanks for all the comments.
     
  12. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Thats not correct.

    The word is "enterprise"...Commercial does not come into it. Or frequency. Frequency merely makes it a business for income tax purposes but doesnt change any tax issues otherwise. A single event is sufficient. Tax Ruling MT 2006/1 uses a load of generic words to address what is a enterprise. A systematic process to buy, seek approval (or not!) and conduct significant / substantial reno's and sell will be enough.

    Is it new premises or a sale of existing residential premises ? If so GST may not apply. But the substantial reno issue may impact. And yes, the margin scheme IF its available and claiming GST on inputs.

    This case was also about income tax avoidance. Blatant avoidance and non-disclosure of profits under income tax and GST law. Add penalties at the highest levels. She sought advice and ignored it....She claimed the advisers fees as deductions so finding the advice she was given was easy.
     
  13. Brady

    Brady Well-Known Member

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    As per @[email protected] comments, doesn't need to be multiple.
    I have bought, renovated, sold within 12 months, it's a single event, but it's an enterprise.
    GST will apply, margin scheme used, income tax payable.