All Topics / Value Adding / CGT, GST & general questions.

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  • Profile photo of jezfonzjezfonz
    Member
    @jezfonz
    Join Date: 2011
    Post Count: 6
    February 21, 2011 - 10:46 am

    G'day,

    Please excuse my ignorance but I've tried searching through old posts for the answer, but just can't seem to find it.

    I'm new to property investing and am looking for advice on pushing over our PPOR, subdivide into two 330m blocks, build 2 townhouses, sell 1 and live in the other. My question is what taxes etc would I be paying on the townhouse we sell?

    As this is our first "big investment plunge" would it be wise to use someone like PnP Subdivision to take the whole thing to build stage…….at a cost of $28K???

    Any other advice would also be welcomed.

    Cheers.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    February 23, 2011 - 12:21 am

    You would pay either CGT or Income tax on the profit – depending on your intentions and set up. You would also probably have to charge GST. see http://www.bantacs.com.au for a good PDF doc on taxes around developing.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of jezfonzjezfonz
    Member
    @jezfonz
    Join Date: 2011
    Post Count: 6
    February 23, 2011 - 1:07 am

    Thanks Terryw, I see you have alot of posts in this forum, can you give me any feedback on outsourcing all the plans, permits etc to a company like PnP?

    Cheers.

Viewing 3 posts - 1 through 3 (of 3 total)

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