Hi,
I need your help!!!!
My parents purchased 2 blocks of land 4 years ago.
They have a LOC to finance the loan. They service the loan every month
The titles are in both their names (jointly owned)
They are looking at building a house on one of the blocks (which has been subdivided into 2) therefore have 3 blocks in total
Question:
What do they need to do to register for GST?
My mum is not self employed – she works for the education department
My dad is self employed and has his own business – (i.e. has an ABN)
As they will not rent the house and they will sell it after 13 months, what do they need to do to qualify for the small business CGT concession (i.e 50% reduction)
Thanks
Basilakis
I was just reading about this today on the http://www.bantacs.com.au site. There is a PDF document on property investment.
Going from memory, it seems that if someone is building with the intention to sell, then they need to register for GST if doing more than one property. There will be no CGT in this case as the property is an active asset. The profit is just income with no 50% deductions.
But if the intention was to rent the property out long term, then there would be no need to register for GST and the 50% CGT reduction would apply.
I think your parents need to see a good accountant and get some good advice.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
http://www.bantacs.com.au/booklets/Rental_Properties_Booklet.pdf
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for your advice Terry.
I will look into it. Its very hard to find an account that is specialized in this area.
Any people you recommend in adelaide
Basilakis
It is very hard to find an account that is specialized in this area. – Depends on where you are located ?
Richard Taylor | Australia's leading private lender
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