I’ve seen things like roughly five years to rent out an asset before you sell it where it’s considered a rental property, rather than you selling stock that you’ve built. You don’t want to play around with this stuff – you don’t want to say, “Oh yeah, I’ve rented it out for six months to avoid GST.” It just doesn’t work like that. GST might be a necessary evil in a way.
There is a bit of saving grace there; If you’ve purchased your land or your site and it’s had GST on it, then you may be able to claim that GST on your purchase. If you’ve heard of the “margin scheme”, it basically says you pay GST on your profit, rather than on the sale price, and that’s for benefit if you’ve acquired a site that you haven’t paid GST on.
So let’s say you paid $2,000,000 for a block of land and you can’t claim GST because it wasn’t a GST supply, then the margin scheme (if you can apply it) allows you to just pay the GST on the profit, which is pretty exciting than paying full whack on your sale price.
All of these are things you need to work out before you get into it. You need to determine what your tax impact is, and how that plays out in your feasibility.
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