CGT, GST and repayment to the bank

Discussion in 'Accounting & Tax' started by jsoe000, 2nd Dec, 2015.

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  1. jsoe000

    jsoe000 Well-Known Member

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    Hi all, could someone please enlighten me with my query?
    I will buy a splitter or reconfig block in QLD with the intention of halving the block and move the house to one block, so I end up with one smaller vacant block and one smaller house & land block. Say the purchase price is $500k for example at LVR 80%.
    1. If I wish to sell off either the vacant block for e.g. $250k OR the house+land for $300k, what's the go with the bank? Do I have to repay the bank anything to keep my LVR 80% on whichever block I aim to keep?
    2. On the block for sale, will I be subject to CGT as well as GST if I sell it within the first 12 months?
    3. How would CGT be calculated because the block is now smaller and worth less than the purchase price?
    Anything else I should be aware of? Thanks a million!
     
    jsoe000, 2nd Dec, 2015
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes you will need to keep the LVR within the bank's limit.

    Yes possibly.

    see recent threads on this topic and my tax tips.

    Yes - consider the deductibility of interest as well.
     
    Terry_w, 2nd Dec, 2015
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 2nd Dec, 2015
    #3