My PPOR is on 30 acres. I am sub-dividing it into 3 x 5 acres lots and leaving 15 acres with the house. I have been living in the house for 5 months. The sub-division will probably take another 4 to 5 months to complete.
I know the 3 x 5 acres lots will attract CGT, but what about the house I live in that will end up being on 15 acres. Will that attract CGT if I sell it when I have lived there for under 12 months?
I have tried to look this ruling up on the ATO website, but couldn’t find anything.
Thanks for your help.
Regards,
Lee.I’ve sort of answered this question in another post, however, I have problems with the whole acre/hectare conversions thing.
Bottom line….your principal place of residence and up to 2 hectares of land is CGT free, anything over the 2 hectares you’ll pay capital gains tax on. There is no time limit on how long you have to hold a property and live in it for it to be classed as your principal place of residence. However, I imagine you will have some issues with the CGT on the balance of the land over and above the 2 hectares.
For a definitive answer I suggest you call the ATO and ask for someone who can give you legal advice on the CGT laws regarding PPOR, size of land and 50% discount.
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