Hi
I have a PPOR that I am looking to demolish, then sub divide the land into to separate blocks to build two separate units. (ie. unit 1 & 2)
My intention's are to live in one of those units permanently (ie. unit 1) and then just rent the other one out (ie. unit 2).
Then longer term my intentions are to sell them both. (eg. in 5 years time)
Is anyone able to provide my with the tax implications if I were to adopt this strategy.
In particular with regard to the sub division of the original property into two new titles. Would I be subject to any form of stamp duty on those new titles. In particular for unit 2 given that the intention is that this be an rental property and would be in my name as well as unit 2.
Also would unit 1 be subject to CGT in the future or would it be exempt given that its my PPOR. I would assume that unit 2 would be subject to CGT if sold later on down the track and I discount would apply given that I would have held the new property for over 12 months
Look forward to your reply
I have a PPOR that I am looking to demolish, then sub divide the land into to separate blocks to build two separate units. (ie. unit 1 & 2)
My intention's are to live in one of those units permanently (ie. unit 1) and then just rent the other one out (ie. unit 2).
Then longer term my intentions are to sell them both. (eg. in 5 years time)
Is anyone able to provide my with the tax implications if I were to adopt this strategy.
In particular with regard to the sub division of the original property into two new titles. Would I be subject to any form of stamp duty on those new titles. In particular for unit 2 given that the intention is that this be an rental property and would be in my name as well as unit 2.
Also would unit 1 be subject to CGT in the future or would it be exempt given that its my PPOR. I would assume that unit 2 would be subject to CGT if sold later on down the track and I discount would apply given that I would have held the new property for over 12 months
Look forward to your reply
