Hi all,
My partner and myself own a property that we purchased in 1990 and now we would like to subdivide that property into two equal survey strata lots. If we were to sell one of the lots would we pay CGT from the date of purchase (1990) or from when we subdivided?Thanks for your help.If you subdivide a block of land, each block that results is registered with a separate title. For capital gains tax (CGT) purposes, the original land parcel is divided into two or more separate assets. Subdividing the land does not result in a CGT event if you retain ownership of the subdivided blocks. Therefore, you do not make a capital gain or a capital loss at the time of the subdivision.
However, you may make a capital gain or capital loss when you sell the subdivided blocks. The date you acquired the subdivided blocks is the date you acquired the original parcel of land and the cost base of the original land is divided between the subdivided blocks on a reasonable basis.
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