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Selling development blocks in SW Sydney, what costs involved+ what tax benefits?

Discussion in 'The Buying & Selling Process' started by Peter Taffa, 29th Nov, 2015.

  1. Peter Taffa

    Peter Taffa Active Member

    Joined:
    25th Aug, 2015
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    Location:
    Sunny Belfield NSW
    Hi all,
    As a first time investor I must apologize for what sounds like pretty basis questions for investors.
    We have a couple of land release building blocks in SW Sydney that have yet to be registered. We purchased these this year and will be putting them on the market 2nd Q next year. Registration is not until Q4 next year.
    What costs will we face apart from the following;
    Sellers Fee (The original sub division seller will relist these for us for 5k each)
    Solicitors fees
    Stamp duty
    CGT ( as we will be selling with in the 12mth limit and not be eligible for the 50% discount)

    Is there anything we have missed?
    I must point out that we have no desire to finalize any of these at registration and develop as this will use up any equity we have for our future investment portfolio. Our desire here was to generate some income (however small) to help write down our current mortgage and increase equity in our PPR.

    What tax concessions or tax savings can we look forward to and make sure our account has these covered.

    Thank you.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sounds like it may be not CGT but taxed as income as your intention was to sell at a profit.
     
  3. Peter Taffa

    Peter Taffa Active Member

    Joined:
    25th Aug, 2015
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    Location:
    Sunny Belfield NSW
    Terry,
    thank you. I think we have this covered as we have a 99/1 split between wifey and I ( i have the higher income.
    Any one else...
    Bueller
    Bueller

    anyone
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  5. Peter Taffa

    Peter Taffa Active Member

    Joined:
    25th Aug, 2015
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    Location:
    Sunny Belfield NSW
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Did you read my post? The main reason is contractual disputes. Say you cannot settle for what ever reason, you will both be sued. THis applies to both purchase and sale. A double change of both being sued. Best to use one of you as 1% amounts to didly sqwat.
     
  7. Peter Taffa

    Peter Taffa Active Member

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    Location:
    Sunny Belfield NSW
    Thank you @Terry_w for that information.
    I have one other question regarding these blocks.
    We have deposit bonds with our bank against our present PPOR mortgage The bank has these as term deposits, we have establishment fees on each term deposit as well charges every 6 months ongoing fees to maintain these.
    Are we able to claim these fees as costs when doing our final calcs for CGT?
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Location:
    Sydney
    PT I would think that these fees would be deductible against income or CGT depending on the circumstances.