Hi all
Just seeking some assurance i am on the right track or making a complete fool of myself!
Me and my partner are going to purchase a property in Melbourne for $660,000 - demolish it instantly, build two townhouses (225k each), sell one and retain the other and live in it for 12 months, then rent it out & repeat!
My thoughts are as follows - I have spent a long time reading many books and thought pieces, i just want to make sure im on the right track before going to my accountant, who im sure wont understand any of this!
We are planning to purchase the property in a Land Tax Unit Trust, and use the negatively geared provisions to claim interest in personal tax returns (im self employed and my partner is salaried) - also using this structure means we can avoid paying extra land tx?
The trustee purchases the property (corporate) and builds the development. We sell one and move into the other.
The one we sell is on Income account? and distributed to Unit Holders? (no CGT?)
The other is kept in the trust, we live in it for 12 months then either sell it (50% CGT discount) or rent it out.
We register the trust for GST and claim it on expenses relating to the property sold on income account? And pay it on proceeds?
We don't pay or claim GST on the other?
Also with this structure, we could transfer the property to a beneficiary without incurring stamp duty?
Any thoughts or comments would be appreciated....This is all from my own research and im no expert!
Cheers
Aidan
Just seeking some assurance i am on the right track or making a complete fool of myself!
Me and my partner are going to purchase a property in Melbourne for $660,000 - demolish it instantly, build two townhouses (225k each), sell one and retain the other and live in it for 12 months, then rent it out & repeat!
My thoughts are as follows - I have spent a long time reading many books and thought pieces, i just want to make sure im on the right track before going to my accountant, who im sure wont understand any of this!
We are planning to purchase the property in a Land Tax Unit Trust, and use the negatively geared provisions to claim interest in personal tax returns (im self employed and my partner is salaried) - also using this structure means we can avoid paying extra land tx?
The trustee purchases the property (corporate) and builds the development. We sell one and move into the other.
The one we sell is on Income account? and distributed to Unit Holders? (no CGT?)
The other is kept in the trust, we live in it for 12 months then either sell it (50% CGT discount) or rent it out.
We register the trust for GST and claim it on expenses relating to the property sold on income account? And pay it on proceeds?
We don't pay or claim GST on the other?
Also with this structure, we could transfer the property to a beneficiary without incurring stamp duty?
Any thoughts or comments would be appreciated....This is all from my own research and im no expert!
Cheers
Aidan
