Hi im building a house to sell, I want to know if i buy the land and it takes 9 months to build the house and i sell it within a year im going to pay 48% in capital gains tax but if i sell the house after a year is the capital gains tax still as high?
If you're building a house to sell, then CGT is irrelevant as the profit will be part of your normal income. Also you will need to factor in GST.
If you are building a house to keep and you sell and you have held the land more than 12 months you may get the 50% CGT discount ad pay no more than 24% tax. If you used a discretionary trust you may even pay less.
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
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