Are you in the business of renovating properties?

If you renovate one or more properties, you need to work out if you:

• are in the business of renovating properties
• are carrying on a profit-making activity of property renovations, also known as 'property flipping'
• are a personal property investor
• have undertaken renovations that constitute substantial renovations.

Your conclusion will affect your tax obligations and entitlements.

To decide whether or not a property has been substantially renovated, read from paragraph 53 of GSTR 2003/3 Goods and services tax: when is a sale of real property a sale of new residential premises?

For more information, see:

• Capital gains tax
• Are you in business?
• Capital gains tax property exemption tool.

For help applying this to your own situation, phone 13 28 61.