All Topics / Help Needed! / Calculating CGT after subdivision?

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  • Profile photo of darkness72darkness72
    Participant
    @darkness72
    Join Date: 2013
    Post Count: 51
    July 5, 2016 - 7:17 am

    Hi there,

    I am wanting to figure out the rough CGT on an investment property, that I have subdivided / split in 2.
    If I am looking at selling 1 property, for the calculations do I basically cut the original purchase price in half, or is it a % of how much of the land is split against each of the 2 blocks….
    If I’m looking at selling the front block with the existing house, and keeping the rear smaller parcel of land with the new house…..
    Is there a better cut calculator to use to get an approximate figure…..

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 5, 2016 - 9:23 am

    You should seek proper tax advice.

    You will need to apportion the land over the 2 halves taking into account any remaining house. You will need to pay a valuer to do this as it will be unlikely the that 2 halves are identical – they may have different aspects, views, positions, neighbours etc.
    Any expense relating solely to one block would be an expense against that block.

    There is no calculator for this sort of thing.

    Also consider – does CGT even apply? It could be revenue.

    And GST.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 2 posts - 1 through 2 (of 2 total)

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