One for the accountants.
I'm in the process of subdividing a block which is my PPOR and have a few questions regarding CGT.
I purchased the house on 11 acres in DEC 2007 and I'm in the process of subdividing into two 5.5 acre blocks. I know that I'll be liable for CGT on the sale of the vacant 5.5 acre block but have the following questions-
-I'd like to hold the vacant block for 12 months before selling so as to halve the CGT payable. Does that 12 months start from Dec 2007 when the land was purchased or from when it is subdivided onto a seperate title?
-How would the purchase price of the newly created vacant block be determined for CGT purposes?
Thanks
RC
I'm in the process of subdividing a block which is my PPOR and have a few questions regarding CGT.
I purchased the house on 11 acres in DEC 2007 and I'm in the process of subdividing into two 5.5 acre blocks. I know that I'll be liable for CGT on the sale of the vacant 5.5 acre block but have the following questions-
-I'd like to hold the vacant block for 12 months before selling so as to halve the CGT payable. Does that 12 months start from Dec 2007 when the land was purchased or from when it is subdivided onto a seperate title?
-How would the purchase price of the newly created vacant block be determined for CGT purposes?
Thanks
RC