How to determine date of acquisition for sale of a subdivided block

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Bruce4Tax · Answer

When determining cost base of subdivided properties is states the acquistion date is the date of the original purchase. Yes - because when you subdivide, the parts that are separated from the main residence are deemed to be never a part of the main residence. With land and main residence property holdings, the above special rule doesn't apply so in the event of subdivision the land acquisition has to be the original date of purchase - the original acquisition. Yes, but you will get a partial main residence exemption. If the original main residence was retained, then you would get the 'date first rented' valuation re-done main residence - now with reduced land area. You need proper advice relevant to your facts.

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