A bit of a tricky tax question.
If I buy a block with another person with the intention to subdivide and use either the existing house as my PPOR or take the back block to build a house which will be my PPOR – what are the tax implications?
After living in the newly built house for a few years, when I sell, will I need to pay any CGT?
What about upon creating of the back block and taking posession of it? Any tax payable then?
How would stamp duty work in this scenario?
Anyone with at least part of the answers?
I guess a lot will depend on how the property is bought prior to subdivision.
I'm thinking something like: I purchase the house in my name as PPOR with someone else providing a big part of the money with the understanding that they will acquire the back block after subdivision, or the vice versa with me providing money with the understanding that I will acquire the back block.
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