Thought I might run this question by the board before I raise it up with my accountant and nut out a detailed financial feesability study. Gives me time to first get my head around the concepts, think things through and identify the proper questions to ask my accountant.
Property in question is located in Brisbane and has been an IP ever since purchased quite a few years ago. I feel that the time is getting close to demolishing the original house and build 2 houses on the splitter block. What are the tax implications if I decide to immediately sell one of the houses I build either as off the plan or straight after completing the build. Do I have to pay for GST? How is GST calculated? For CGT will a 50% exemption be applied on the profit above base + build costs. I am assuming the base cost will be half of the original purchase price adjusted for claimed depreciation and capital works.
Property in question is located in Brisbane and has been an IP ever since purchased quite a few years ago. I feel that the time is getting close to demolishing the original house and build 2 houses on the splitter block. What are the tax implications if I decide to immediately sell one of the houses I build either as off the plan or straight after completing the build. Do I have to pay for GST? How is GST calculated? For CGT will a 50% exemption be applied on the profit above base + build costs. I am assuming the base cost will be half of the original purchase price adjusted for claimed depreciation and capital works.