All Topics / Help Needed! / Tax payable on profits from a subsdivison

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of markh3084markh3084
    Participant
    @markh3084
    Join Date: 2010
    Post Count: 43
    November 22, 2011 - 9:06 am

    Evening everyone.

    My tax question relates to subdivision.

    Take this scenario:…..I borrow and purchase a house on a larger block, and then subdivide the block, and build at the rear. If I then sell one renovated house and one 'new' house which would have its own address, what is the tax payable? Obviously, capital gains is payable on the front house due to improvements (as I don't intend to live in it and claim it as my PPOR), but as the rear property is a new address or title, how does your tax shake out? Has anyone gone through this process?
    cheers

    Mark

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 22, 2011 - 9:38 am

    Possibly income tax rather than capital gains. Costs will be appoortioned between the two. GST likely to be payable too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of markh3084markh3084
    Participant
    @markh3084
    Join Date: 2010
    Post Count: 43
    November 22, 2011 - 8:47 pm

    Thank you Terry

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.