I bought a vacant land in 2004 with the intention to build a home on it and live there when I retire. I have now retired. As it is a large piece of land, I have been advised to subdivide it and build two homes on it, selling one and moving into the other as my principal home.
My questions are;
- What is the GST, CGT and Income Tax implication for the subdivided property which I will move in and live there? Am I correct to assume it will be tax free now and tax free many years later if I sell it as it is my principal home?
- What is the GST, CGT and Income Tax implication for the subdivided property which I sell after building a house on it? Am I correct to assume that it will be subject to CGT with the cost base based on a fair ratio of the subdivided land cost by area and the cost of building a house on it? I am not so clear on the GST issue.
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606 views
1 replies