If I buy a block and then build on it say house completed 12 months later then sell it what tax has to be paid?
The other question is, if I move into it how long do I need to live there to qualify it as my principal place of residence?.
If it is going to be your PPOR, you won’t have to pay tax on it when you sell it, whether that’s within 12 months or not.
If you move into it, it is automatically your PPOR and no timeframe is required. If your mail is getting delivered there, utilities in your name, it’s registered on the electoral roll etc. it is automatically assumed as your PPOR.
If you dont move in, I would probably not sell within 12 months anyway, that way you get CGT discount and if you did sell within 12 months it would be taxed at your marginal rate (income tax rate)-G7Quote:If you dont move in, I would probably not sell within 12 months anyway, that way you get CGT discount and if you did sell within 12 months it would be taxed at your marginal rate (income tax rate)-G7Do you mean not sell it for 12 months from the date land tile is in my name? or when the actual house is finished?.
thanks for your info.
If the house is intended to be your PPOR then no CG tax however even an accountant would probably advise you to live in the property at lease 12 months
Onthego,
The 12 months starts from when you entered into the contract to buy the land.
Julia Hartman
[email protected]
http://www.bantacs.com.au
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