All Topics / General Property / Demolishing PPOR

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  • Profile photo of RiskyRisky
    Member
    @risky
    Join Date: 2003
    Post Count: 146
    February 19, 2004 - 5:52 am

    Hi all ,
    A friend of mine wants to demolish his PPOR and stata titled the land into 2 blocks , would he have to pay capital gains tax on the sale of the blocks ? Even though its been his PPOR for 10 years.

    Or demolish his PPOR and sell the land as one lot ,would he still have to pay capital gains tax ? [:0]

    Any info on this situation would be greatly appreciated.

    Regards Risky

    Profile photo of tonyy21692tonyy21692
    Member
    @tonyy21692
    Join Date: 2003
    Post Count: 128
    February 19, 2004 - 7:55 am

    Risky

    1)Demolish, then strata,(I quess you mean subdivide) then sell. The question is “am I carrying on an enterprise” and if yes how will I be taxed, looking at both income tax and GST? The ATO have lots of worked examples of these scenarios on the website.

    2) demolish and then sell. Implying greater sale value as vacant land to a potential purchaser even after demolish costs? I have seen this happen recently and CGT wouldn’t apply as it is a private asset being presented in the best way for sale, (I think its the Lambton mine case around 1930?)

    Hope this helps

    Regards
    Tony

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