Hi,
I have a potential opportunity to purchase house next door to my parents PPOR. Both on a corner which equates to approx 1800sqm. My father had plans for two large plots on his block but if I purchase next door could potentially have six smaller blocks.
He purchased the property in 1981 and I read the ATO Article on subdividing and amalgamating land, my understanding is that the subdivided blocks (from his original block) are deemed to have the same acquisition date as the original parcel of land. The plan is to sell the blocks, not to actually build, so in theory could he sell the blocks with acquisition date of 1981 and no CGT??
The issue I see is that one of the blocks would have to be made up by part of both original blocks. Would that create an issue for the CGT of my parents original block? Would they be better off selling me that part that we need for the block in the middle?
Anything else to consider, other options to minimise CGT?
Appreciate all feedback and info.
thanks
OG
I have a potential opportunity to purchase house next door to my parents PPOR. Both on a corner which equates to approx 1800sqm. My father had plans for two large plots on his block but if I purchase next door could potentially have six smaller blocks.
He purchased the property in 1981 and I read the ATO Article on subdividing and amalgamating land, my understanding is that the subdivided blocks (from his original block) are deemed to have the same acquisition date as the original parcel of land. The plan is to sell the blocks, not to actually build, so in theory could he sell the blocks with acquisition date of 1981 and no CGT??
The issue I see is that one of the blocks would have to be made up by part of both original blocks. Would that create an issue for the CGT of my parents original block? Would they be better off selling me that part that we need for the block in the middle?
Anything else to consider, other options to minimise CGT?
Appreciate all feedback and info.
thanks
OG