All Topics / General Property / Captial Gains on Subdivision

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  • Profile photo of Lulu_2Lulu_2
    Member
    @lulu_2
    Join Date: 2004
    Post Count: 1

    This is my first post on this forum, although I’ve learnt alot just from reading through other posts over the past few weeks.

    My partner and I have just bought a property on 1327m2 block of land which we are in the process of subdividing so that we can sell the additional block.

    One question that recently came up was how capital gains is worked out on subdivided blocks of land when they are sold. Obviously this will have an impact on whether we hold the block for 12 months or sell asap.

    I’m wondering if anyone has experience with subdivisions and capital gains?

    Thanks
    Lou

    Profile photo of AUSPROPAUSPROP
    Participant
    @ausprop
    Join Date: 2003
    Post Count: 953

    I would suggets you have a read through http://www.ato.gov.au – they have excellent and very detailed examples of exactly this type of situation. also I understand that the 12 month rule went out the window a few years back (but persists as an urban myth!)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I recall seeing (but not reading) a tax ruling on this subject too on the ATO site.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of young.learneryoung.learner
    Member
    @young.learner
    Join Date: 2003
    Post Count: 37

    ok, if the whole block was ur ppr and u devide it, u have to pay cgt on the block ur selling. this can be avoided if u decide to sell the existing ppr within 6months bfore selling the 2nd block. this is a little vague, and for more info, e-mail me and i’ll send u a copy of the whole clause!

    sorry

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