Without realising! While the big land grab was on in the Cooloola Coast, Hervey Bay area, I perchased 2 blocks of land , Now I have a CGT issue thats going affect my child maintanance payments if I sell either, The only solution I can see to this problem is to build on 1 . Live in that house for 12 months then rent it or sell it?
Then build on the second and do same?
Anyone got any better ideas?Hi Brad1m,
I don’t understand how this will affect your child maintenance payment.
I may be under the misguided impression, that CSA payments were not subject to income testing.
Please correct me (someone, anyone) if I am wrong.
Jo
Brad,
If the problem lies in the fact that you are making a capital gain and therefore increasing your income for the year then you will be assessed on that income and you may have to pay more child support.If this is the case you need to ask yourself a the question.
1.Am I avoiding my responsibility to pay maintenance and depriving myself of possible good gains which I can better put to use elsewhere?
Dont hold yourself back for fear of others benefitting.You will also benefit in the long run.
RussOriginally posted by RussH:Brad,
If the problem lies in the fact that you are making a capital gain and therefore increasing your income for the year then you will be assessed on that income and you may have to pay more child support.If this is the case you need to ask yourself a the question.
1.Am I avoiding my responsibility to pay maintenance and depriving myself of possible good gains which I can better put to use elsewhere?
Dont hold yourself back for fear of others benefitting.You will also benefit in the long run.
RussHi Russ
I second your comments above. As a +CF investor from Gympie, all I can say is “well done” for buying 2 blocks of land in Cooloola before they rose.
I’ve done nicely on Qld’s Sunshine Coast as well
Cheers
Greg F
Thanks for your comments Russ, I actually went back and re-read the message; and noticed that Brad was referring to HIM paying child maintenance, not receiving. Durrrrrr….
Hence, now I understand Brad’s dilema!!!!
I was looking at it from the payee’s point of view. Either way, I totally agree with your comments.
Cheers,
Jo
Sorry folks!
The numbers dont add up to do this at the moment.
Your opinions are appreciated though.[computer]
Anyone have a strategy?OK All:
Looks like im not looking at this from the right angle, this is the point where i ask ?
Where is the advantage in selling now?I read a quote in this site that said:
Sometimes a blind man can see what a sighted man cant.
Guess IM that sighted man at the moment ?Could someone point out some of the advantages in selling now ?
[blink][blink]Morning Brad.
The twelve months you reffer to, are they related to the first home owners grant? Because you would only need to ‘live’ in the house for 6 months (refer to Steves analysis of the refrased legislation in one of the past three news letters).
Furhter, if there is such a growth, why sell? Wy not build (one then the other @ a later stage) and rent out? You could be sitting on a further gold mine.As to your obligations as a father, forgive me but if they are your children wouldn’t you want to do every thing for them to be better off than you? You split from your wife – not them. Sorry, I have been a father for three years now and I wouldn’t want my littlees to miss out on anything, ever! Despite your wife….
Please forgive the sentimental oppinion of a happily married bloke with two beautiful children.[inlove]
Cheers
C@34
Hello again Brad1m,
In response to your email, I thought I would post my reply to you, so that if anyone disagreed with me, or had a better idea, they could post it here, and perhaps be of some further assistance to you.
You kindly clarified to me, that you are paying rent where you are living now, and that you are looking at building on one of the blocks, move in and then sell it off (thus, being exempt from CGT).
I mentioned that you need to weigh up the cost of building against the CGT if you were to just sell the block (or blocks) now. If you have done your homework, and as you mentioned to me in your email, have sorted out that it is indeed cheaper to go with the build/move in plan, then I can’t see any reason to go against that decision……sounds feasible.
HOWEVER….I also tend to agree with M.A. in that the blocks are not revenue generating, and because you are paying rent in the meantime, to build could be an even more expensive exercise, just to wait and avoid CGT.
Hope I have gotten the picture right (this time!!!) as I know I have not been clear in your dilema all the way through.
Cheers,
JO
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