Hi Experts,
I have an investment in block of land in South Eastern Suburb of Melbourne. I have purchased that block of land last year in September at around 175K. When I purchased a block of land, it was not title cleared. I just paid 10% deposit (17.5K) and purchased that block. Title will release in March this year.
I review the price of last land release in same estate. Currently developer is selling around same size of block in 202K.
So I was thinking to sell that block and gain a profit before borrowing loan from Bank in March, when land title will be clear.
What I want to understand is, lets say I sell my block in 195K, a price difference i will get is 20K.
Do I have to pay Capital Gain Tax (CGT) on 20K?
What happen if I invest that 20K in another property before end of financial year, still I have to pay CGT on 20K?
How can we avoid CGT? Is there any clue anyone have ...
Regards,
KanChi