Considering a dual occupancy property development? Is it your investment property site or your principal place of residence ?

The ATO has many rulings and determinations as well as a substantial amount of tax law governing the way Property development profits are taxed.

If you are considering property development you need to plan the project carefully from a tax perspective.  There are significant differences in tax treatment depending on the way you do it.  There are many factors that inflluence the final tax treatment.

Did you know that GST, Capital Gains Tax and income tax are all considerations in this type of transaction.? Well they are all involved.

With expenses, these are also treated differently in various cases.  Sometimes what would normally be an interest deduction is capitalised and becomes a capital expense. This can then seriously impact cash flow and the amount of borrowed funds that are involved in your project.

Is the project based on a development of your principal place of residence ?   This can make things interesting and can change the whole dynamic of your project. Elections need to be made and because of the length of time involved in completing a project, a graet deal of forward planning is necessary.

We specialise in property tax issues. Give us a call now on 9832 0900 to book a free no obligation consultation to discuss your project with us so that you can find out how to naviage through the tax maze.