Property Development - Personal Name

Discussion in 'Development' started by Blackmores, 29th Sep, 2015.

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  1. Blackmores

    Blackmores Well-Known Member

    Joined:
    29th Sep, 2015
    Posts:
    112
    Location:
    Melbourne
    Hi guys,

    We have a large block of land that we bought a very long time ago that we are thinking of subdividing and putting 3 townhouses on them. The problem is, the property is under our personal names. I would assume that would attract a massive 47% tax bill once the development is sold. Are there any ways to minimize the tax we need to pay? Will selling off the plan vs selling when completed make any difference at all? We are open to moving into one of the units as well if it helps.

    We thought of moving it into our family trust but stamp duty and CGT might kill as well isn't it?

    Thanks.
     
    Blackmores, 29th Sep, 2015
    #1
    cheekykoon likes this.
  2. 380

    380 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,353
    Location:
    Australia
    @Blackmores

    Best to consult accountant /Tax adviser!

    Plenty questions that need scenario modelling and outcome of tax liability can be different for each scenario!

    @Paul@PFI touched based on this topic at last Sydney meetup!

    On a simple structure modelling, development circa $1.7M, it was a tax saving of $70K on one model and around $130K on 2nd model (sell half, keep half)
     
    380, 30th Sep, 2015
    #2
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