Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

CGT, GST & Tax Deduction

Notify me of new replies via email
Your Investment Property | 20 Mar 2014, 04:39 PM Agree 0
Our tax experts are on hand to answer any tax queries you may have regarding your property investments and wealth creation strategies. Email your taxing questions to
  • Andrew | 24 Apr 2014, 12:00 PM Agree 0

    I purchased some land a few months ago and have commenced building a house. To avoid CGT I need to live in the home for 12 months, but was wondering does this start from when I purchase the land, commence the build, finish the build and move in?

    Thanks, Andrew
  • Hamish | 02 Dec 2015, 08:50 AM Agree 0
    The interplay between CGT, GST and deductibility of interest is interesting.

    Assuming I am developing a block for the purposes of selling, my understanding is that:
    - GST is claimed on construction costs and then paid on eventual sale using the margin scheme
    - CGT - provided held for > 12 months, 50% discount may apply but can depend on whether you are making a business of it (in which case the property could be trading stock and no discount applies)
    - interest deductibility - ?

    Alternatively, assuming I am developing a block for the purposes of renting long term (> 5 years), my understanding is that:
    - no GST implications (don't claim / pay) if held for more than 5 years
    - CGT discount of 50% should apply as held > 12 months
    - interest is deductible as per the original post

    Appreciate some clarification as to when interest is and isn't deductible.
Post a reply