All Topics / Legal & Accounting / capital gains tax

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of frosty1frosty1
    Member
    @frosty1
    Join Date: 2007
    Post Count: 61
    January 9, 2008 - 9:06 am

    could anybody please tell me, would i pay any type of tax if i was to create a half acre or even one acre block of land from my house on two acres, and sell it? If local council would let me subdivide, that is.     our zone is residential 1.
    is there much involved in doing this?

    the house on 2 acres is my P P O R.

    any ideas or thoughts appreciated,

    thanks,
    frosty

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    January 9, 2008 - 9:47 pm

    You are generally allowed some curtillage around your 'rural' residence however once you subdivide, this is a new property and subject to cgt. Same goes for selling subdivided duplexes etc

    Profile photo of frosty1frosty1
    Member
    @frosty1
    Join Date: 2007
    Post Count: 61
    January 10, 2008 - 7:33 am

    thanks scott,

    once subdivided and i sell, how and who determines the cost base price of the new block?

    as it came from my PPOR.   This would also lower the value of my PPOR because it is now on a smaller piece of land.

    If i sell it all together as one, i pay no CGT.     If i sell in two pieces i pay CGT.  

    Is this right? 

    thanks again,

    frosty1

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.