PerthPropertyHunterParticipant@perthinvestorJoin Date: 2014Post Count: 12
I have a couple of things I need your valued thoughts on please…
1. I need to work out the GST liability of the sale of a new residential property – my understanding is that I calculate 1/11th of the sale price minus (the construction and development cost times 1/11th plus 1/11th of the land purchase price). Is this correct or other factors involved?
2. During the construction period can I claim things like interest costs (and any other costs) against my income?
Thanks in advance everyone.
1. GST would generally be calcuated on the sale price of the property while it is new.
There may GST inputs you can claim.
2. Depends on the circumstances. If your intention is to build and sell then the interest would be a capital expense.PerthPropertyHunterParticipant@perthinvestorJoin Date: 2014Post Count: 12
Thank you Terry, much appreciated. Yes the intention was always to sell this dwelling so great to hear the interest could be claimed. Unfortunately, the clarity level of the ATO website is very low.
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