Not sure how to calculate CGT

Hi everyone,

I’m looking to get into house development – subdivisions, building – but however am confused on how CGT is calculated on these investments.

For example (to make things simpler I have ignored closing costs):
1. Buy a house on a large block of land and subdivide
– Price = $350,000
– Sales price of subdivided land = $150,000
Is there CGT applicable on the land sold?

2. Buy a property on a large block of land, build a second house, subdivide and sell, keeping the original house
– Price = $350,000
– Sales price of new house = $400,000
– Cost of building = $200,000
How is the CGT calculated in this case?

Thanks in advance for your help.

TK