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
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