Hi All
Great forum!! I'm a new member here, and have read quite a few posts now. There seems to be quite a bit of knowlegde to be gained so i will be reading more.
I have a question relating to CGT and how it applies to my situation:
I have owned my principal place of residence since 2002 and have lived in it the whole time.
I am planing on demolishing the old house that is on the block and building 3 townhouses.
I could live in one of these and rent the other two out with a view to selling them after 12 months. In this situation i guess i could claim the CGT exemption on the one i lived in as this would be my principal place of residence, then pay the CGT on the gain from the other two. Would that capital gain be calculated from the purchase price in 2002?
Altertately i could sell all three immediately. If so would the profit be taxed as normal income?
I would appreciate anyones experience with this or the recommendation of a good accountant that specialises in property tax.
Thanks
James
Great forum!! I'm a new member here, and have read quite a few posts now. There seems to be quite a bit of knowlegde to be gained so i will be reading more.
I have a question relating to CGT and how it applies to my situation:
I have owned my principal place of residence since 2002 and have lived in it the whole time.
I am planing on demolishing the old house that is on the block and building 3 townhouses.
I could live in one of these and rent the other two out with a view to selling them after 12 months. In this situation i guess i could claim the CGT exemption on the one i lived in as this would be my principal place of residence, then pay the CGT on the gain from the other two. Would that capital gain be calculated from the purchase price in 2002?
Altertately i could sell all three immediately. If so would the profit be taxed as normal income?
I would appreciate anyones experience with this or the recommendation of a good accountant that specialises in property tax.
Thanks
James
