Forum Replies Created
WallFlower:
Houses are considered stock only if the trust is in the business of property trading. Generally you would not be too happy to be classified as a property trader because the total proceeds from the sale will be an assessable income.For example, you buy property for $100,000 as a property trader and sell it few years later for $300,000. Inititally you could claim $100,000 as a deduction when you purchased the property, but when you sell it, $300,000 will be assessable income (or to be more precise: the net income of the trust) which when distributed to the beneficiaries or unit holders (depends what sort of the trust is it) will be fully assessable in your hands.
Cheers
Vkolaj
CGT is payable in both scenarios.
GST is payable on the sale of the vacant land only if you are registered for GST.
Vkolaj
You can start calculation of depreciation and other deductions from the date the property is available for rent.
The date of exchange of contracts is used for capital gains tax purposes only, so for example 12 months period of ownership (if you want to get 50% capital gains tax descount) starts next day after the date of signing the contract.Vkolaj
JamesR:
The CGT rollover relief you were talking about does not apply to companies only, but to trusts and sole traders as well. In short, to all small business.TerryW: It can apply to the property as well if it satisfies an active asset test.
gmh454: You were closest to the right answer. However, you does not have to sell all assets or all business.
Cheers
Vkolaj
