I have bought developed a property nominating the margin scheme. I realise I pay GST on the building cost of the property if I I sell within 5 years but what happens with the GST that I incurred in the building costs which I have not claimed as I went along.
e.g. my land component was $200 000, my building costs were $400 000 inclusive of GST totalling $40 000 as yet unclaimed. I sell for $700000 . What do I pay GST on ? $400 000 or $360 000.
Also does the interest paid effect the GST due. Is it a deduction of the selling price?
Thanks if anyone knows the answer.
You will be paying gst on 1/11 of $500k, the land being exempt under the margin scheme. ($45,455)
You will also claim back your gst paid being $40k, so a net position of gst payable of $5,455.
I can’t comment on the interest position.
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