Hello all
We are about to purchase a new property with the intention of living in the house but completing an already commenced subdivision of one into three.
We would be left with the main home and would sell the two lots upon registration which would be well within the 12 month period so we wouldn't receive any CGT discount.
Trying to work out the best entity to purchase in. We are "intending" to make a profit on the sale of the blocks but not the home.
Having done some basic numbers with apportioned land component values and development costs, it would appear that if we went the CGT way, buying it in my wife's name we would be liable to pay more tax (even though she has no PAYE income) than if I bought it in the trusts name and used the margin scheme for the two newly created lots.
I assume we would than "rent" the property back from our trust (at market rent).
I'm in the process of sourcing a new accountant as my current one and I differ in the value of his advice and time to date.
I have the company and trust structure shelved atm due no use and am just paying ASIC each year to keep them as I have a $40k loss there that I felt could be used at a later date should I ever "get back on the horse" for more property transactions....."plays sound of leather creaking as stirrups hit the saddle!"
I am off to source a new accountant Monday but thought I would ask of the good folks here if you had any thoughts or considerations that I am obviously missing.
Thanks
We are about to purchase a new property with the intention of living in the house but completing an already commenced subdivision of one into three.
We would be left with the main home and would sell the two lots upon registration which would be well within the 12 month period so we wouldn't receive any CGT discount.
Trying to work out the best entity to purchase in. We are "intending" to make a profit on the sale of the blocks but not the home.
Having done some basic numbers with apportioned land component values and development costs, it would appear that if we went the CGT way, buying it in my wife's name we would be liable to pay more tax (even though she has no PAYE income) than if I bought it in the trusts name and used the margin scheme for the two newly created lots.
I assume we would than "rent" the property back from our trust (at market rent).
I'm in the process of sourcing a new accountant as my current one and I differ in the value of his advice and time to date.
I have the company and trust structure shelved atm due no use and am just paying ASIC each year to keep them as I have a $40k loss there that I felt could be used at a later date should I ever "get back on the horse" for more property transactions....."plays sound of leather creaking as stirrups hit the saddle!"
I am off to source a new accountant Monday but thought I would ask of the good folks here if you had any thoughts or considerations that I am obviously missing.
Thanks