All Topics / Help Needed! / Capital Gains Tax (Sub-division)

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  • Profile photo of adz000adz000
    Participant
    @adz000
    Join Date: 2007
    Post Count: 1
    March 12, 2007 - 2:52 am

    Hi,
    i currently have a property of size 3.4 hectares with a family house in which i live in. The property has been sub-divided into two blocks.

    one block: 2.4 hectares with the family house
    other block: 1 hectare, no house

    If a house was built on the 1 hectare block and the block then sold with a new house on it, would capital gains tax have to paid?

    Or would i have to live in the new house for 12months and then sell it?

    Alternatively, if i sold the 1 hectare block as it is (no house, just land), would capital gains tax still have to be paid?

    Thanks,
    Adam.

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618
    March 12, 2007 - 5:51 am

    From the ATO:

    MAIN RESIDENCE
    Generally, if you are an individual – not a company or trust – you can ignore a capital gain or capital loss from a CGT event that happens to your ownership interest in a dwelling that is your main residence (also referred to as ‘your home’).
    To get full exemption from CGT:
    â–  the dwelling must have been your home for the whole period you owned it
    â–  you must not have used the dwelling to produce assessable income, and
    â–  any land on which the dwelling is situated must be 2 hectares or less.

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

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