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  • Profile photo of Pro investorPro investor
    Participant
    @pro-investor
    Join Date: 2003
    Post Count: 108
    May 15, 2006 - 6:25 am

    hi everyone
    I want to buy a house and convert it into a duplex. my question is if i buy it using my company trust for 100 000 and 80 000 to change it into a duplex than sell one side of for 130 000 and keeping the other leaving me with a 50 000 debt do i still pay capital gains on the unit i sold even though i have a 50 000 debt.

    thanks Rob

    Profile photo of ptnptn
    Participant
    @ptn
    Join Date: 2006
    Post Count: 74
    May 16, 2006 - 12:11 pm

    Hi robertbath,

    If you move in and claim the place as your PPOR (Primary place of resident) than build the duplex and sell it, you wont have to pay captical gain. But if you build it before moving in, then you’re looking at halving the cost / captical gain. IE, Paying CGT of $40k.

    I am not an accountant but I’ve done this before.

    Regards
    ptn

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 16, 2006 - 12:55 pm

    Have a look at the various documents available at this accounting site:
    http://www.bantacs.com.au

    Terryw
    Discover Home Loans
    Parramatta
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