hi all,
am looking at my first property and want to put a tenant in the front and sub divide the rear. how is the capital gains tax worked out if i am keeping the front block????The implication is that you are intending to sell the rear. In this case CGT will not apply as your intention is to develop and you will not get any discount if you hold for more than 12 months. Your profit will be based on the % age of the current value of the rear block as is to the whole plus a proprtion of the subdivision costs deducted from the sale price of the rear block. You will need to consider whether to register for GST and what impact if nay the margin scheme may have
You must be logged in to reply to this topic. If you don't have an account, you can register here.
