We are planning to move into our investment property (which has been rented out since brought 3 years ago). The property is with subdivide potential so we are planning to develop the site with 2 new houses. One will still be our PPOR, and another one will be put on the market.
We have questions regarding capital gain tax.
Since half of the development is our PPOR, we thought that we should organise a valuation after the end of the lease, before we move in? This is to ensure that when we sell the PPOR , the accountant can work out the relevant capital gain. However, someone told us that is not the case-since the property is an investment property from start, all the building costs etc will form part of the base costs when selling and there is no exemption even we do not have any other PPOR.
It then sounds silly to move in since all the interests during our stay (at our PPOR) is not tax deductible.
We will be grateful if someone share some lights on the matters.
Really appreciate!
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