Hi guys
I have my own PPOR but and I am looking to buy an investment property (ie. in my own name).
The property that I am looking at has an existing dwelling on it however it also has a permit approved for a separate home to be built at the rear of the “existing” property.
If I went ahead and did purchase I would be looking to undertake the renovation’s required to the existing house as an owner builder. Then in terms of the construction of the “new building” at the rear of the “existing” home would utilise the services of a registered builder to construct.
Upon completion (ie. the renovation & the new build) would look to re-sell both of the properties.
If I was to adopt this structure would I be required to be registered for GST (in particular for the new build) given the property would have bought in my name at the time of purchase?
I think that this may be the case given that it would be an enterprise and I would assume GST would apply to the construction of the “new” home however GST wouldn’t be applicable to the “existing” house. Can anyone confirm that this is correct?
Secondly I assume that the GST that I would be required to pay to the builder for the construction on the “new” build would be claimable?
Then when it came to sell the “new” property I could apply the margin scheme (ie. deduct the cost of the land off the sale price and divide it by 11 to work out the GST liability on the construction of the new property).
Also assume that both properties would be subject to Capital Gains Tax. However how would one work out what the cost maybe to calculate what might be payable on both properties.
Look forward to anyone’s advice/tips as to how I should structure and what I may or may not be up for.
Thanks
I have my own PPOR but and I am looking to buy an investment property (ie. in my own name).
The property that I am looking at has an existing dwelling on it however it also has a permit approved for a separate home to be built at the rear of the “existing” property.
If I went ahead and did purchase I would be looking to undertake the renovation’s required to the existing house as an owner builder. Then in terms of the construction of the “new building” at the rear of the “existing” home would utilise the services of a registered builder to construct.
Upon completion (ie. the renovation & the new build) would look to re-sell both of the properties.
If I was to adopt this structure would I be required to be registered for GST (in particular for the new build) given the property would have bought in my name at the time of purchase?
I think that this may be the case given that it would be an enterprise and I would assume GST would apply to the construction of the “new” home however GST wouldn’t be applicable to the “existing” house. Can anyone confirm that this is correct?
Secondly I assume that the GST that I would be required to pay to the builder for the construction on the “new” build would be claimable?
Then when it came to sell the “new” property I could apply the margin scheme (ie. deduct the cost of the land off the sale price and divide it by 11 to work out the GST liability on the construction of the new property).
Also assume that both properties would be subject to Capital Gains Tax. However how would one work out what the cost maybe to calculate what might be payable on both properties.
Look forward to anyone’s advice/tips as to how I should structure and what I may or may not be up for.
Thanks