Dual Occupancy Building/Selling

Hi Team,

Looking for some advise on how best to financially structure a dual occ build that we want to do on our current property in Victoria.

We want to build two townhouses on the land we already own, title is currently in my wife's name, I have some previous years capital losses that I would like to use to offset any capital gains on the project. All current loans are joint.

What would an appropriate strategy be to minimise capital gain taxes based on our situation?

Possible option I am considering,

1. purchase 50% (the half that we want to sell) of the property into my name based on current council valuation
2. build the two townhouses keeping records of the 50/50 split,
3. subdivide based on that so that she owns one and I own the other,
4. move into one she owns, rent the other one
5. depreciate second property against my income for 2 years
6. sell second property and deduct capital losses

Cheers,

 

Lots of things to discuss with your adviser of choice

 

You might be deemed to be carrying on an enterprise i.e business. so you have to take into account the GST issue as well. there are lots of other things to consider so it might be best that you seek legal advice before you take any action