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Capital Gains Tax Event - property development

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Does the development of a property purchased pre CGT in 1985 create a CGT event?

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Devotee

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Hi @Gregoryg,

 

Welcome to our Community!

 

There are many things to consider when working out if the sale of an asset is a CGT event, including:

 

  • The time a CGT asset is acquired - generally speaking, CGT doesn't apply to assets purchased prior to 20 September 1985. Find out more about CGT exemptions in our Guide to capital gains.
  • The type of property you have (i.e. block of land, dwelling, commercial space)
  • Whether the property is used for residential or business purposes. Different uses of a property (for example, if the property was intended to be used as a residential or commercial rental, or if the property was used as a home office) may lead to different CGT implications - check out our Property  guide for more.

You can ask us to provide written advice on how we think tax law applies to your specific circumstances by requesting a private ruling. Private rulings are a free service we provide, and we aim to respond within 28 days of receiving your request.

 

Thanks.

 

1 REPLY 1
Highlighted

Best answer

ATO Certified

Devotee

Replies 0

Hi @Gregoryg,

 

Welcome to our Community!

 

There are many things to consider when working out if the sale of an asset is a CGT event, including:

 

  • The time a CGT asset is acquired - generally speaking, CGT doesn't apply to assets purchased prior to 20 September 1985. Find out more about CGT exemptions in our Guide to capital gains.
  • The type of property you have (i.e. block of land, dwelling, commercial space)
  • Whether the property is used for residential or business purposes. Different uses of a property (for example, if the property was intended to be used as a residential or commercial rental, or if the property was used as a home office) may lead to different CGT implications - check out our Property  guide for more.

You can ask us to provide written advice on how we think tax law applies to your specific circumstances by requesting a private ruling. Private rulings are a free service we provide, and we aim to respond within 28 days of receiving your request.

 

Thanks.