CGT on subdivision

Viewing 4 posts - 1 through 4 (of 4 total)

jaytor
Member
@jaytor
Join Date: 2003
Post Count: 0
September 8, 2003 - 5:58 am
guy’s i’m new to this so can anyone help me out with the tax rule for subdivisions, ie
buy a property with house, sub divide it, sell off the land subdivision and rent out the house at the front of the block
is it the CGT same for any other sale ?
PS interested in this for victoria
trueblue
Member
@trueblue
Join Date: 2003
Post Count: 142
September 8, 2003 - 7:57 am
CGT is a Federal tax & therefore applies throughout Australia.
It is best you get a surveyor/valuer to provide you with a value for the subdivided backyard.
jackadder
Member
@jackadder
Join Date: 2003
Post Count: 16
September 8, 2003 - 12:51 pm
Hmmm… I think you need to get the front house valued. You have established the value of the back by selling it. You can then take (value of the back) divided by (total value) to get the proportion attributable to the back. Take this proportion of the original purchase price to get the cost base of the back land. The increase in value of the back is your capital gain.
I will be checking with the ATO on a similar scheme. Will post if there is any additional info.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
September 10, 2003 - 3:47 am
There are many tax rulings etc on this available at http://www.ato.gov.au search on the legal database under rulings.
Terryw
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North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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