Converting the title of an IP

[Tom]

Hi,

What are the tax implications of converting the title of an IP from say Company to Strata or Torrens to Strata?
Does the conversion trigger a Capital Gain?
Can the costs be deducted or are they added to the base cost of the property?

cheers,
Tom

 

[paulzag]

I don't know the answer but I believe that a new title creates a new property for GST purposes. So any subsequent sale must include GST.

 

[Tom]

Thanks Paul,

Further investigation is required.

cheers,
tom