All Topics / Legal & Accounting / company capital gains on units
hi everyone
I want to buy a house and convert it into a duplex. my question is if i buy it using my company trust for 100 000 and 80 000 to change it into a duplex than sell one side of for 130 000 and keeping the other leaving me with a 50 000 debt do i still pay capital gains on the unit i sold even though i have a 50 000 debt.thanks Rob
Hi robertbath,
If you move in and claim the place as your PPOR (Primary place of resident) than build the duplex and sell it, you wont have to pay captical gain. But if you build it before moving in, then you’re looking at halving the cost / captical gain. IE, Paying CGT of $40k.
I am not an accountant but I’ve done this before.
Regards
ptnHave a look at the various documents available at this accounting site:
http://www.bantacs.com.auTerryw
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