What name to purchase under if building dual occ with one being PPR

Bought a block of land, going to build two townhouses and live in one for a year or two.

To get the PPR exemption, do we need to have the purchasing entity to be ourselves as individuals?

Or can we buy in the family trust name, then treat one of the townhouses as our PPR?

Tax wise, I assume, would need a valuation before demolition and calculate profits that way.

Also, I believe in Victoria, you can also get an exemption from the higher rate of land tax attributed to trusts if one of the beneficiaries is living in there - or only the case if the trustee of the trusts are living in there? (In this case we have a corporate trustee for the family trust).

 

One title or two?

 

Have you purchased already ?

If not have you considered tenants in common with a deed of partition for potential stamp duty savings if you want to split the assets.

 

Look at a deed of partition. The main residence exemption can only be enjoyed by an individual.

 

You can't call a block of land a ppor as you can't live on it (subject to timing for construction applies).

 

It's currently got an old house on it. Planning will be finished in a few months so technically we will be living in there for 6 months or so.

Deed or partition? Tenants in common?

 

talk to a good lawyer who understands property like @Terry_w and they can explain all those concepts

 

There could be issues if the site is being developed for sale of the other T/H.
1. A partition is a GST supply so partition could have a GST issue ifthe owner is required to be registered for GST. The GST is non-creditable and can be a cashflow trap for the buyer.
2. TD 92/135 may apply and the property may not be eligible as a main residence

 

I have written a tax tip on deeds of partition.