Hi All, Just got a few queries in regards to Development and the Margin Scheme.
After days and days of looking at ATO websites and forums, I still haven't got a clear idea of the Margin Scheme. Any chance you guys could assist?
1) Do I need to purchase the property under the margin scheme (ie include the words "margin scheme" in the contract of sale) in order for me to use the margin scheme when I sell the 3 units? How does this relate to each other?
2) If yes, does the vendor need to agree to this at auction? Does the margin scheme affect the Vendor at all if he/she is not registered for GST?
Scenario:
-Planning an acquisition of a free standing residential property on separate title. 3 Bed, 1 car single storey.
-The property is on auction (executors sale) in Melbourne.
-Purpose is subdivision and develop/construct 3 townhouses.
-All townhouses are to be sold.
-The acquisition will occur under my company which is registered for GST.
-The vendor is not registered for GST.
After days and days of looking at ATO websites and forums, I still haven't got a clear idea of the Margin Scheme. Any chance you guys could assist?
1) Do I need to purchase the property under the margin scheme (ie include the words "margin scheme" in the contract of sale) in order for me to use the margin scheme when I sell the 3 units? How does this relate to each other?
2) If yes, does the vendor need to agree to this at auction? Does the margin scheme affect the Vendor at all if he/she is not registered for GST?
Scenario:
-Planning an acquisition of a free standing residential property on separate title. 3 Bed, 1 car single storey.
-The property is on auction (executors sale) in Melbourne.
-Purpose is subdivision and develop/construct 3 townhouses.
-All townhouses are to be sold.
-The acquisition will occur under my company which is registered for GST.
-The vendor is not registered for GST.
