If I purchase a block of land say on January 1 2005 and build on it by on July 2005 and then go to sell it at a later date…is the CGT calculated from the date I purchased the land or the date I built something on it?
Gingers
The date you sell it!!!!
And it also depends on WHAT you are building on it; if it is to be your PPOR then provided you live in it for at least 6 months, you will be CGT exempt.
If you were to build a rental property on it, then you better hold onto it for at least 12 months in order to get the 50% CGT discounted rate.
Cheers,
Jo
P.S. Use the SEARCH function on left hand side of the screen and type in CAPITAL GAINS TAX and you’ll get pages and pages of threads/posts re this very topic which have been covered over and over again.
I agree with monoplay but be careful if you sell it without anyone living in it you could also have to pay GST . Go see your accountant before you put it on the market.
Good luck Rick[drummer]
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