My husband and I purchased an IP for 230K five years ago, it is leased since settlement.It’s probably worth 370K at the current market.
Now we want to knock down the house and rebuild our family home on it. Once it’s completed, it is going to be our principle residence.The building cost is around 250K.
If we live in the new home for 10 years and want to sell it later, say 800K (hopefully)[biggrin], how does capital gain tax calculated in this instance?
Because it’s knock down and rebuild, do we need to get it value by a valuer for CGT purpose??
please help. Any advice is greatly appreciated.
Regards
ZeffixI’d definitely contact the ATO and get a ruling on this. I don’t know the answer, but if you are intending on doing it, you need a ruling in writing, not just someone’s opinion over the phone.
I have rung two different ATO offices, say city and Mt Gravatt, and received differing opinions on some matters, so get it in writing.
Good luck and happy building.
Regards, Wylie
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