Question 1:
Scenario is that the development will commence in one tax year - buy land, pre-dev costs, hopefully subdivision costs but the build would not be competed till mid way through the following financial year. Will probably hold 1, sell 1. Can someone explain how claiming costs would work in this scenario?
Question 2:
Same scenario as above - buy block build 2 houses, hold 1, sell 1. My understanding is that I would be liable for GST on the house which is sold, but is it GST on the full sell price or do input tax credits apply here?
Scenario is that the development will commence in one tax year - buy land, pre-dev costs, hopefully subdivision costs but the build would not be competed till mid way through the following financial year. Will probably hold 1, sell 1. Can someone explain how claiming costs would work in this scenario?
Question 2:
Same scenario as above - buy block build 2 houses, hold 1, sell 1. My understanding is that I would be liable for GST on the house which is sold, but is it GST on the full sell price or do input tax credits apply here?