ATO Community

CGT and Subdivision of block

This post is archived and may not be up-to-date.

Newbie

Views 851

Replies 2

Hi Community!

Seeking as much knowledge as possible to try and educate ourselves before talking to tax agent/accountant. We purchased our house on 1.6 hectares of land in late 2016. After purchase, we discovered our zoning enabled us to subdivide our block.

We are currently looking to split the block into 3, main residence which we will obtain and two vacant blocks - that we intend to sell. These will obviously attract CGT as they are not our main residence, but will they be eligible for the 50% discount for 12 months of ownership?

Many sources indicate that ownership begins when the original parcel of land was purchased but many others state ownership begins when the new title is received (requiring us to hold the land for 12 months? to reduce cgt)

Probably a simple one, but would be appreciative of clarification!

Thanks
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn

Replies 1

@CJTindale 

 

Yes they will attract the 50% discount because they have been held for more than 12 months.

Most importantly get the cost base correct to reduce CGT.

 

2 REPLIES 2

Most helpful response

Taxicorn

Replies 1

@CJTindale 

 

Yes they will attract the 50% discount because they have been held for more than 12 months.

Most importantly get the cost base correct to reduce CGT.

 

Newbie

Replies 0

Thank you!