All Topics / Legal & Accounting / CGT implications of subdivision and 2 new houses

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  • Profile photo of NewtothisNewtothis
    Member
    @newtothis
    Join Date: 2011
    Post Count: 1
    June 21, 2011 - 2:18 pm

    Hi,

    I am new to this so I hope I will be giving you enough information. I was hoping forum members might have some advice about the CGT implications of the following scenario:

    1.  We bought a house in 2000 and lived in it for 9 years (PPOR).
    2.  The house is demolished and we rent a house to live in.
    3.  A new house (House A) is built on half of the original block.
    4.  The block is subdivided (into 2 halves; 1 has the house on it) and 2 new titles are created.
    5.  The building of House A is completed and we move in.
    6.  Six months later we sell House A and move out into a rental property.
    7.  A new house (House B) is built on the remaining vacant block and we move in.

    Any thought about the CGT implications of the sale of House A and possible future sale of House B?

    Thanks in advance,

    Newtothis

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 22, 2011 - 12:08 pm

    Not an easy question to answer!

    Try looking at http://www.bantacs.com.au as they have a PDF document with information on this.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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