G'day All,
Asking on behalf of a friend:
Bought a property in Sydney, has lived in it for a few years, now has moved out, demo'd property and is building a duplex.
Will go back and live in one side once the construction's complete and potentially sell the second half, though whether or not this happens will depend on cash flow and also CGT implications.
How would you calculate CGT on this basis?
Place was originally his PPOR so no CGT there, then 50% of build cost (or more) relates to PPOR, so is it the taxable gain just sale price minus a portion of the build cost?
Asking on behalf of a friend:
Bought a property in Sydney, has lived in it for a few years, now has moved out, demo'd property and is building a duplex.
Will go back and live in one side once the construction's complete and potentially sell the second half, though whether or not this happens will depend on cash flow and also CGT implications.
How would you calculate CGT on this basis?
Place was originally his PPOR so no CGT there, then 50% of build cost (or more) relates to PPOR, so is it the taxable gain just sale price minus a portion of the build cost?