All Topics / General Property / CGT after 'Splitting'

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  • Profile photo of Having a goHaving a go
    Participant
    @having-a-go
    Join Date: 2004
    Post Count: 0
    December 11, 2020 - 2:30 pm

    Hello all, would really appreciate some info.  Our IP (purchased nearly 20 years ago) is on 2 blocks which are currently on one Title.  Looking to sell and considering demolishing, ‘splitting’ (creating 2 Titles) and selling 2 vacant blocks of land.  How would CGT be calculated in this circumstance?  How would it be calculated if blocks were sold in 2 separate financial years?  TIA

    • This topic was modified 3 years, 11 months ago by Profile photo of Having a go Having a go. Reason: better words
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 12, 2020 - 9:32 pm

    CGT = proceeds less cost base

    cost base would be apportioned between the 2 on a reasonable basis. Might be based on land area or valuation generally.

     

     

    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

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