clarification cgt/gst

[Oshawott]

hi,

just wondering if anyone can clarify the situation below for me please:

IP1 - owned 2 years with DA approval.
IP2- owned 1 year, subdivided so now has vacant rear land and a retained front house.

If i sell the IP2 rear lot, i know now i have to pay GST/margin scheme, but what about if i sell IP1 with just DA, does it fall under cgt rules or GST.

what about retained house, cgt or GST?

thanks very much

 

[coastymike]

not enough facts.

1. what was your original intention when you purchased the properties ?
2. did you purchase the properties using the margin scheme or as an input taxed supply ?
3. are you registered or required to be registered for GST ?

sounds to me like both sales will be on revenue account under section 6-5 as profit from an isolated transaction. Refer to TR 92/3. CGT wont come into it.

 

[Paul@PFI]

hi,

just wondering if anyone can clarify the situation below for me please:

IP1 - owned 2 years with DA approval.
IP2- owned 1 year, subdivided so now has vacant rear land and a retained front house.

If i sell the IP2 rear lot, i know now i have to pay GST/margin scheme, but what about if i sell IP1 with just DA, does it fall under cgt rules or GST.

what about retained house, cgt or GST?

thanks very much

IP1 prob wont be subject to GST as its not new residential OR vacant land. If you demo the house GST might apply. If its habitable on sale its likely no GST.

IP1 taxation of profit would need to consider your intention. Its likely to be subject to CGT rules. However IP2 may not be as clear.

Personal tax advice is a must.