Owner builder valuation for tax purposes

Hi,
I have built a unit (owner builder) at the front of my existing residence with the aim of strata titling both properties and then selling the original residence (lived there for 12 years) and renting out the new unit as a investment. We then plan to buy a PPOR in a different suburb.
I know that I won't pay capital gains of the original residence but would like to ask about two scenarios.

1) we rent out the unit as planned. How do I establish a true cost of the build for tax purposes since I am an owner builder? Do I use a quantity surveyor and also get a valuation?

2) If I have to sell, say in a year or two, how do I minimise the GST amount? It would obviously be beneficial to be able to establish a true cost of the build but as I have done most of the labour myself, the materials receipts would no where near add up to a realistic cost. Can I use a quantity surveyor or valuer to establish a real cost which would be accepted by the tax office? Also, would I have to charge and pay GST?

I have looed to see if I could find a previous answer to this question but did not find one so I apologise if its been answered before.

I appreciate your assistance and advice.

Cheers
 
How do I establish a true cost of the build for tax purposes since I am an owner builder? Do I use a quantity surveyor...
Yes, you'd use a QS to establish the cost of the build (but remember this is only where you've lost receipts, otherwise it should be the actual cost).

and also get a valuation?
No, as a val will include the land component.

If I have to sell, say in a year or two, how do I minimise the GST amount?
3 choices:
1. Keep for 5 years as a rental - no GST needs to be in the final sale price (but neither can you claim input credits)
2. Sell cheap :( (as GST is a % of the sales price)
3. Claim GST credits on the build - you must keep receipts. Do some research on the 'margin scheme'.

It would obviously be beneficial to be able to establish a true cost of the build but as I have done most of the labour myself, the materials receipts would no where near add up to a realistic cost.
You cannot charge for your own labour.

Can I use a quantity surveyor or valuer to establish a real cost which would be accepted by the tax office?
NOT for the purpose of claiming GST input credits - no. You need the actual receipts.

Also, would I have to charge and pay GST?
Yes, but you can use the 'margin scheme'.

Check out some of the free booklets on http://bantacs.com.au/booklets.php
There is one there called "how not to be a developer" which may assist.
 
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