Hi,
I'd appreciate input and clarification on the following.
Background:
I have a block of land that I have built a property. Initially, my intention was to sell but I also have the option to rent it out.
As an FYI, I am a PAYG salary earner with no other investment property interests.
My Understandings / Clarifications Needed:
My understanding based on the Steele case is that I can claim the interest on the construction if the intent is to rent it out within a reasonable time period, correct? If so, does this rule also apply if you sell it upon completion as well?
Furthermore, is it a general rule that if our intention is to build and sell, then you would be classed as a developer, therefore unable to class the profit made from the sale as capital gains (and unable to claim the 50% deduction if held more than 1 year), instead being classed as income, and also liable to GST implications?
Many thanks in advance.
I'd appreciate input and clarification on the following.
Background:
I have a block of land that I have built a property. Initially, my intention was to sell but I also have the option to rent it out.
As an FYI, I am a PAYG salary earner with no other investment property interests.
My Understandings / Clarifications Needed:
My understanding based on the Steele case is that I can claim the interest on the construction if the intent is to rent it out within a reasonable time period, correct? If so, does this rule also apply if you sell it upon completion as well?
Furthermore, is it a general rule that if our intention is to build and sell, then you would be classed as a developer, therefore unable to class the profit made from the sale as capital gains (and unable to claim the 50% deduction if held more than 1 year), instead being classed as income, and also liable to GST implications?
Many thanks in advance.