Hi Samsons,

Whilst you can transfer the security for the loans from one property to the other (which is what the bank is talking about), you can not change the principal purpose of the loans, which effects tax deductibility.

To put it another way, if you move into your investment property, then the funds you borrowed to purchase that property…[Read more]

Its a complex issue.

Firstly, the sale of the new block will indeed be a capital gain tax event. Secondly, regardless of whether you build, or sell vacant, you will be entitled to the 50% CGT discount, as you have owned that land for more than 12 months.

The cost base of the land, will actually be the appropriate portion of the ORIGINAL purchase…[Read more]

ladybird wrote:
Is it sufficient for us to just record GST payments we make during the development and if subsequently deemed to be subject to GST on or after selling, register for the GST then so that we can claim back GST paid? Or do we need to register for the GST now, even though it may turn out not to be an issue, to be on the safe…[Read more]