I have several questions regarding a subdivision which I am half way through completion and I am now unsure at what stage I should sell and what taxes etc that I will have to pay,
Purchased in personal name.
Owes me $450,000.
Option 1,
Current valuation the way it stands $600,000
I have development approval to subdivide into 3 lots and keep the existing house on 1 lot
I could sell now and pay capital gains on the $150,000/$75,000.
Option 2,
Complete development and install water power etc and get individual titles cost $50,000, sell $700,000.
Option 3,
Complete development and build 2 new houses cost $500,000 sell all 3 for $1,350,000
I am interested to know what taxes I will have to pay etc for each option?
and will I still get 50% CGT free on each option?
Do I pay GST on any of the options or on some parts etc?
prob straigt income tax. gst on the sale of new land for first 5 years. may be able to apply margin scheme.
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
thankyou terry. I tried searching the margin scheme but couldn't quite find what I was looking for.
Just another thought, if I moved into the property for 6 months and then sold it in its current state as a whole piece of land , how would the capital gains tax be worked out,
A, say its worth $600,000 today and I sell in 6 months for $650,000 would I pay tax upto $600,000 and then the remaining $50,000 would be tax free as it would be my ppor or is it worked out differently?
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