Hi,
I am having trouble getting an answer from my accountant to the following question.
I bought an IP (one house on block) in Moranbah QLD 2006.
I have recently (July 2011) built a second house on the block and am in the process of subdividing.
If I was to sell both properties as individual lots before July 2012 will I still be able to claim the 50% exemption for CGT on both lots, if any?
Cheers,
Lee
I think the answer is that it will depend on when you entered into the original contract to purchase the property not the date the new title came into existence.
But there is also a possibility that CGT won't apply if you are developing. Then it would be just income tax.
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
hello Lee
Based on my experience it would be a CGT event as you have owned the property for more than 12 mths but you need to be guided by your accountant – if you are concerned you could apply for a private ruling from the ATO.
I am interested in property in Moranbah send me a private message if you are thinking of selling
cheers
Thanks Gents,
Appreciate your time.
Here is some info that some of you may be interested in.
http://www.bantacs.com.au/booklets/How_Not_To_Be_A_Developer_Booklet.pdf
Cheers,
Lee
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