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Hi…we have just completed our first property development of 6 units.

We have decided to keep one unit in the family trust so if we sold 5 at a profit do we just pay CGT on the profit or do we have to include the value of unit we want to keep?

6 years ago

Responses

Brendan Curran

Current Rating: 4.88 / 5

Accountant

Newcastle, NSW

6 years ago

That depends on whether the unit is "trading stock" or an "asset"

and that, in turn depends on whether you are in the business of developing property or you are a one-off developer and the units are capital in nature.

And that, in turn depends on what your intention was at the commencement of the development.

If you ask the ATO, they will tell you its trading stock and you get to pay tax on it. And I presume you are not super keen on this, so your best bet is to have a chat with your accountant about what it is you are doing (ie property developing business or investment vehicle) and be guided by him/her.

cheers
BC

Nick T.

6 years ago

thanks Brendan... it was our first development and it was a last minute decision to keep one after we started the sales process. we will speak to our accountant but we might reach out of that's ok.
Regards Nick

Hi…we have just completed our first property development of 6 units. We have decided to keep one unit in the family trust so if we sold 5 at a profit do we just pay CGT on the profit or do we have to include the value of unit we want to keep?

Hi…we have just completed our first property development of 6 units.

We have decided to keep one unit in the family trust so if we sold 5 at a profit do we just pay CGT on the profit or do we have to include the value of unit we want to keep?