Hello, in June last year i purchased the house over our back fence with the intention of transferring land to it to make a 2700sqm approx parcel of land suitable for development in the distant future. The plans for boundary realignment have been to council and approved and its all basically done. I have transferred land off the back of my current PPOR to the other house and also purchased some land off the neighbour for a fair price and had that transferred to the other house.
Now the questions:
1) I have not rented out the house we purchased last june and plan to move into it but am i liable for any land tax since its my second property and currently not my PPOR. (we currently have my PPOR listed for sale)2) Is there any taxes like CGT or GST payable on the purchase of some of my neighbours land
3) whats the deal with Declaring a PPOR if youve purchased a new property before you sell your existing property.
everyones help is much appreciated. I havnt posted much here but have been lurking. Its a great forum.
1. generally land tax would apply to second propertes, but there are tax free thresholds, so you may be exempt still. This varies from state to state.
2. CGT only applies on a sale. GST would only apply on new land or commercial.
3. There is provision in the tax act, ITAA 1997 to have 2 main residences for a period of 6 months if you are selling one. There are a few conditions tho.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for the reply. looks like the only thing i may need to worry about is the neighbour having to pay CGT on the land he sells me. I will look into it further. But if he is liable for CGT i think we will be able to work around it anyway.
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