Margin Scheme Confusion

Discussion in 'Development' started by Blackmores, 22nd Jul, 2016.

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  1. johnmelbourne

    johnmelbourne New Member

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    Melbourne
    the best answer ever
     
    johnmelbourne, 9th Aug, 2017
    #21
  2. Hamish Blair

    Hamish Blair Well-Known Member

    Joined:
    29th Sep, 2015
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    489
    Location:
    Melbourne
    Generally if developing the 50% CGT discount does not apply.

    If you bought an IP, collected rent, and several years later sold the IP for a gain then its likely the 50% discount applies.

    Re GST Margin scheme; ensure you tick the “GST MArgin Scheme applies” box on your sale contract, and that the conditions applying to the orignial purchase are satisfied.

    The margin is the difference between the purchase price of the land and the sale price. I don’t think stamp duty (happy to be corrected) increases the price paid, nor does commission on sale reduce the proceeds.

    GST would be claimed on the selling agent’s commission though.
     
    Hamish Blair, 9th Aug, 2017
    #22
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