Hi all
I currently own a rental property and have now decided to knock it down and build a duplex on it. The intention is to live in one side and sell the other. I have been told I should be able to apply CGT to the profit I make when I sell. Some questions on this:
1. The construction will occur over 2 financial years. For the expenses I have incurred so far on the construction in this financial year do I need to report these in my tax return in a business schedule to carry forward the loss? Or do I simply keep all the receipts and add it to the cost base when I sell in the next financial year?
2. For the 50% CGT discount, when does the 12 months start date apply? Is it the time when I bought my rental property or when the duplex is completed?
Thanks for all your views in advance (I will also be talking to an accountant this week).
Cheers
Charlie
I currently own a rental property and have now decided to knock it down and build a duplex on it. The intention is to live in one side and sell the other. I have been told I should be able to apply CGT to the profit I make when I sell. Some questions on this:
1. The construction will occur over 2 financial years. For the expenses I have incurred so far on the construction in this financial year do I need to report these in my tax return in a business schedule to carry forward the loss? Or do I simply keep all the receipts and add it to the cost base when I sell in the next financial year?
2. For the 50% CGT discount, when does the 12 months start date apply? Is it the time when I bought my rental property or when the duplex is completed?
Thanks for all your views in advance (I will also be talking to an accountant this week).
Cheers
Charlie