If you buy a property that is your PPOR for a few years and then build a town-house at the rear, subdivide and sell the rear property, what date is used for CGT calculations and hence being able to claim the 50% discount? Is it the date the original property was acquired or the date of the subdivision, or something else?
The date is the date you purchased the original property as sub divided new land has no cgt exemption. See
http://www.ato.gov.au/corporate/content.asp?doc=/content/86198.htm
this should give you an idea of what is involvedhttp://www.localpropertynews.net/articles/general/20041101-subdivision_residence.htm
Thanks
If you are subdividing to build and sell for the purpose of making a profit, it could be treated as ordinary income and no CGT discount would apply.
If you are building to rent, the building would generally have the same CGT date as the land, following the rule that what is attached to the land is part of the land.
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