Have an IP , rented for 9 years. Original cost : $380,000 Value today: $750,000 I have incurred a Capital Gain to point in time B If I go ahead and get a DA for 2 units, build and then sell. Will I be able to keep my Capital gain up to point in time B, where the property was held on capital account as the property was originally purchased for rental.
You want a free opinion? If i said no......the word build confuses me. May be a significant tax issue...no cgt at all gst and.... You want a view that suggests CGT? Not likely
I generally say no way (until you get personal tax advice). May be reckless if I didnt. I dont want the ATO down my neck since they do profile advisers. If you have a builder build multiple dwellings and then you sell its seems like an enterprise and subject to income tax and GST. There may be way/s to limit tax and even GST. All possible. Maybe. There are strategies for the past CGT issue. Actually several 1. K4 CGT event 2. Use of a valuation method other than actual historical cost 3. Timing of events 4. ATO concession for real property sale settled in a later tax period 5. Transfer to another entity 6. Others a lawyer may recommend ie asset on trust
