if u build a house as a owner builder and get back the gst as u build, wat happens wen u sell after u built this house
at say 300,000.
does this price include gst and u have to give back the 30,000 to the government?
if so then u really sold it for 270,000
and wat else is taken from this price?
tax capital gains tax?
so if the block was 100,000
and u spemt 100,000 to build?
after selling wat profit will be made?Originally posted by new investor:if u build a house as a owner builder and get back the gst as u build, wat happens wen u sell after u built this house
at say 300,000.
does this price include gst and u have to give back the 30,000 to the government?
if so then u really sold it for 270,000
and wat else is taken from this price?
tax capital gains tax?
so if the block was 100,000
and u spemt 100,000 to build?
after selling wat profit will be made?If you are an owner/builder you are acknowledging that you are building your own home so as the final consumer you would not be entitled to claim back the gst from the materials and labour you purchase. You are therefore paying the gst component as you build your home thus making your total of $300K gst inclusive. If you then sell your home it will no longer be deemed new and will not incur gst but you will incur Capital Gains Tax and will not be able to go owner builder to replace your home for a few years (depends on which state you live in).
You can only claim back GST if you are carrying on a business enterprise and have an ABN. You would also have to live in your home for at least 12 months to avoid tax complications associated with business. I would suggest that you talk to your accountant as you need some help to understand the basic principles of gst and cgt. I know that it was probably just a figure that you used as an example but if not then I need to let you know that you will not be able to build a house for $100000 unless it is tiny and you are very handy. Good luck.thanks jfisher
has anyone else more to add to this as i need all thehelp i cn get?
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