Can anybody tell me what happens with CGT with land that you build on? Is the cost of building calculated as a deduction in overal capital gain?
Also, is the 12month 50% discount applied from when you buy the land or when the house is finished or when?
Finally, with regards to deductible interest. If i build a property, then rent it for the last 6 months of the financial year, are the interest repayments from the whole year deductible or just those that i paid while it was rented? ie: if i rented the property for only part of the financial year can i only claim a percentage of the interest payments even if it was unrentable for some of the time?
Thanks,
Barney.page 18 Australian Property Investor magazine MAY 2008 has a similar question and answer for the CGT!
Not sure on interest deductibility.Land is just a capital cost. so you add up what you paid for the land and construction and take this from the selling price = capital gain.
Interest on the construction phase should also be deductible if your intention was to rent. (interest on vacant land can be deductible). check with your accountant.
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
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