Hi Guys and Girls,
Hoping someone can provide some ideas on a situation. We’re developing a block through subdividing and constructing 2 new homes and then selling however am a little concerned how much gst would kill our profit.
Just wondering if there are any strategies (legal of course) out there that people know of which would reduce the gst that we would pay when we sell the 2 homes?? Any thoughts or opinions would be most appreciated. You can PM me if you prefer.
Please help! [eh]
Cheers,
Kim
Kim Anand
[email protected]“Money Can’t Buy you Happiness but it Does Bring you a More Pleasant Form of Misery”
Hi Kim
Suggest you start with the Margin Scheme. Refer to ATO webpage
Good luck
tony
Thanks for the tip Tony. Much appreciated [exhappy]
Kim Anand
[email protected]“Money Can’t Buy you Happiness but it Does Bring you a More Pleasant Form of Misery”
Note how much the land cost if pre 99 you might use indexation otherwise go for 50% discount. Cost of land added to cost base.
Note how much the houses cost to build, this is a cost base
Note how much the holding costs are eg RATES, Insurance, Borrowing Costs (spread over five years or less if life of loan less than 5 years), Legal Fees as they can be added to the cost base if you have not claimed a deduction on them against income producing assets.
Also costs incurred to do the sub-division may be able to be added to the cost base. (you need to check with your accountant)
Hold the property for more than 12 months or you won’t get the discount rate of 50% if an individual tax payer.
If joint owned the gain is split across two or more people thus reducing the impact.Here is a good one ! Do not earn any income for the financial year that you sell.
Another pearl: Don’t sell or dispose of asset – no cgt then !
Thanks for the reply Duckster
Actually funny you mentioned that coz my husband recently resigned and has no salary/income as such so we were thinking about putting the house in his name as opposed to our trust. We also know other people who also have a company/trust structure in place for their investing but choose to do alot of the deals in their personal name because of the generous tax bracket these days….
anyone have any thoughts/experiences on this?
Kim Anand
[email protected]“Money Can’t Buy you Happiness but it Does Bring you a More Pleasant Form of Misery”
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