Does anyone know if one sub-divides,what costs are involved,such as stamp duty? Or any other “hidden” nasties??[fear]
stamp duty shouldn’t apply as you aren’t buying anything, though it will trigger capital gains tax. hidden nasties could include the amount of time it wil take to get the title issued before whilst waiting to settle on the sale (if you are selling it) and the associated interest or the biggies which are things such as council required garages, power domes, water works etc. Also additional fencing
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
No stamp duty will apply but you will pay 100% capital gain no matter how long you hold onto the land before you sell. Even if you place a house on the subdivided land it will always attract 100% CGT.
This is the Qld law, I’m not sure of other states.
Duncan
But Cruise, if you placed a house on the ‘new’ block, and then moved into it you would be reducing the amount of CGT that is levied.
I believe you may be able to avoid it altogether in some instances – seek taxation advice…
Cheers
Mel
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