Hi everyone, I am thinking to purchase a house with over 800 square meters, will knock-down and rebuild two duplexes for sale in two years. Not sure if anyone has the same situations and would you please advise what structure did you use? Some of my friends did suggest me to live there first before starting knock-down so i will be eligible for the main residence exemption. However, i did some research and found that there are many risks to be under the individual name. Thanks
I note your other post. It asked about whether the main residence exemption could apply to this (house) property. My answer would be a conclusive. No. TD 92/135 is the relevant ruling. Your friends arent tax advisers. You may find our developer toolkit a comprehensive guide to many tax issues and it may assist later advice being understood
When you knock it down there is no longer a residence to exempt! unless you sold it to a related entity (spousal transfer?) before knocking down to resent cost base. May attract stamp duty depending on your state.
Thanks so much for your help Paul and Hamish, yes I am getting so confused after listening to my friends suggestions. Will have a look at the developer toolkit for a deep understanding before getting later advice Thanks again!
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