Hi, Recently we bought our first investment property and plan to rebuild 3 townhouses. I am struggling what is the best owner structure fit me well. Because my current house is very old, I plan to move into one of the new townhouses after build, meanwhile renovate or develop my current house, then sale the townhouse and move back. If I own this investment property individually, is it possible to waive the capital gain tax? or if there is a better solution? Regards, Ron
If you are not living in the investment property, then there's generally a liability to pay CGT on sale/transfer. As well as stamp duty possibly. Consult your solicitor and accountant before you buy.
Its quite complex. Dont assume CGT applies if its a development site. Many of the tax issues are explained in our developer toolkit. Ideal reading before personal tax advice and a tax plan. Moving into the new acquisition may not actually provide any tax benefits v's the former home. It likely to be taxed as ordinary income as its not a CGT asset. Its explained in the developer toolkit
Yes, it looks complex, I am trying to find a good accountant to make a decision, but right now all accountants are busy .
@Paul Thanks for your info. Where can I find developer toolkit? I searched your website, couldn't find it.
@Terry_w I put nominee in the purchase contract, it was not settled yet. I am reading your website, I really need some advices from you.
Ownership structure is legal advice, best to see a lawyer. Accountants can only advise on commonwealth tax, one of about 15 things to consider.
You can always ask....It not something we always hand out. Its intended for clients and vastly reduces costs and time so we arent having to explain every basic tax issue from sctrach. Saves a load of $$$ if read before advice. Just updated it. It doesnt address structure but structure gets mention. We often discuss structure in tax terms and refer them to someone qualified to give broader advice eg Daryl Richards at Certus Law etc It used to include some other tools but we ceased including it as too many numpties would later call me wanting free advice after self assessing their own tax issues when they had no idea. The development tax plan and record keeping resource is a part of our advice. Here is a copy
@Terry_w You are exactly right. For me I prepared to adjust the structure before settlement, but I find it is not possible because bank need to re-approve the application, which I don't want to take risk into. I am consulting a local lawyer and accountant and following their suggestions.
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