Regarding any better strategies than main residence exemption

Dear Fellow Members,

I heard from a friend that a good strategy is to buy live renovate sell and repeat kind of like those renovation shows on TV.

So the pro part is the tax component but the con is the cap and speed in terms of the rinse and repeat cycle as properties don't grow generally speaking very fast and even if it did it would only be for a few years so it won't last so I guess we can't really count/bank on that.

So this tax brownie strategy comes with a 'scalability' or speedability problem. Kind of like being told you can live for X years so don't bother trying to do X Y Z.

Any other better method to roll the ball like a roller coaster...scary but you can be happy at the end of the experience with the heart kinda bursting.

Many thanks.

Regards
Adam

 

Hi Adam,
There are plenty of strategies......BUT first, what are you trying to achieve please?

 

I think you are thinking this could be done tax free? This is not the case, it would be taxed as income tax with no main residence exemption and no 50% CGT discount and no ability to offset capital losses even.

 

They are proposing to live in it - does that not give them the CGT exemption?

 

Not if they do it too often.

It then obviously becomes a business. Some do it as their full time job.
Marg

 

Not if ther intention is to reno and sell.

 

The issue is intent, they intend to live in it, renovate it, and make a profit, this is deemed an enterprise for tax purposes (my limited understanding)

Regards,
Arc