A friend and I are searching for vacant land with the intention to sub-divide,build and rent/sell. I've a couple of questions, please bare with me.
1) With 50-50 tenants in common, after sub-division each of the new blocks will also have both our names right?
2) If at a later stage, one of us decides to buy the other person's share then is it easy to unwind tenancy in common without paying stamp duty again?
3) Since the intention is to build and rent/sell, I assume the interest costs can be negative geared?
4) How about if we decide not to build but rather just sell the blocks would ATO be unhappy about the negative gearing as it may be seen as Landbanking? Would that incur GST?
5) Can LMI be part of the cost base when we sell?
6) Last but not least, other than the usual caution about JV'ing with friends - are there any tax and or finance consequences that one must consider?
Thanks a ton.
1) With 50-50 tenants in common, after sub-division each of the new blocks will also have both our names right?
2) If at a later stage, one of us decides to buy the other person's share then is it easy to unwind tenancy in common without paying stamp duty again?
3) Since the intention is to build and rent/sell, I assume the interest costs can be negative geared?
4) How about if we decide not to build but rather just sell the blocks would ATO be unhappy about the negative gearing as it may be seen as Landbanking? Would that incur GST?
5) Can LMI be part of the cost base when we sell?
6) Last but not least, other than the usual caution about JV'ing with friends - are there any tax and or finance consequences that one must consider?
Thanks a ton.