From: Apocalypse .
Hi all
I am what you would call a lurker in the sense that for probably the last 18 months all I've done here is read and not contribute.
But now I've got a question:
If you buy a property, hold it for 1 year and 1 day, divide a block off of it and sell the newly created block, how does the 12 month capital gains discount apply?
Is the block deemed to be a "new" asset and need to be held another 12 months, or does it instantly become eligible for the discount (if sold)?
Also, if you divide and hold, the "new" block is non-income producing and hence not able have its expenses deducted, but can this be avoided by renting both titles to the one tenant?
Thanks in advance
Apocalypse
Hi all
I am what you would call a lurker in the sense that for probably the last 18 months all I've done here is read and not contribute.
But now I've got a question:
If you buy a property, hold it for 1 year and 1 day, divide a block off of it and sell the newly created block, how does the 12 month capital gains discount apply?
Is the block deemed to be a "new" asset and need to be held another 12 months, or does it instantly become eligible for the discount (if sold)?
Also, if you divide and hold, the "new" block is non-income producing and hence not able have its expenses deducted, but can this be avoided by renting both titles to the one tenant?
Thanks in advance
Apocalypse
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