What GST would I pay in this situation: 2 lots, old house across the 2 lots. I remove old house, realign the boundaries of the lots- and sell off the 2 blocks.
The buy price of the house is for example $500,000. The sale price of the 2 blocks is $700,000. Net profit form sale after all costs $100,000
Is the GST calculated :
-on the sale price of both lots? or is there no GST if it was already 2 lots.
-on the sale of only 1 as there was always a house on one?
-the difference between buy and sell price? e.g. $200,000
Also, would appreciate understanding how the margin scheme works on a buy or sell
For example, if I buy on the margin scheme how is GST worked out .
How do i sell in a margin scheme?
Thanks
GST generally only payable on new property. You have to consider if this would result in the property being classed as new – check the GST Act – New Tax System……..Act
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
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