This is my first post on this forum, although I’ve learnt alot just from reading through other posts over the past few weeks.
My partner and I have just bought a property on 1327m2 block of land which we are in the process of subdividing so that we can sell the additional block.
One question that recently came up was how capital gains is worked out on subdivided blocks of land when they are sold. Obviously this will have an impact on whether we hold the block for 12 months or sell asap.
I’m wondering if anyone has experience with subdivisions and capital gains?
Thanks
LouI would suggets you have a read through http://www.ato.gov.au – they have excellent and very detailed examples of exactly this type of situation. also I understand that the 12 month rule went out the window a few years back (but persists as an urban myth!)
I recall seeing (but not reading) a tax ruling on this subject too on the ATO site.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
ok, if the whole block was ur ppr and u devide it, u have to pay cgt on the block ur selling. this can be avoided if u decide to sell the existing ppr within 6months bfore selling the 2nd block. this is a little vague, and for more info, e-mail me and i’ll send u a copy of the whole clause!
sorry
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