Hi ,
I bought a big land 2 years ago in which I subdivided right in the middle. I am currently building 2 homes, 1 on each Lot.
Note , my wife, sis and I are owners of each lot.
Once homes are done, we will live in them for 3 to 6 months (wife and I in one home, sister and parents in the other).
How does Capital gains tax work here?
Am I subject to capital gains tax if I have resided in each home?
Thanks
WatchingStarredHistory
MembersPros
Browse Forums Building A New House  01 Nov 2019 18 Junior Member Re: Subdividing, building and selling -- Capital Gains Tax 2Sep 08, 2022 12:26 am You should get professional advice to guide your decisions as it could make a large difference to the amount of CGT you will pay. Some examples here from the ATO: https://www.ato.gov.au/individuals/capi ... ning-land/ You will be subject to CGT on the subdivided property that is not your main residence. Only one of the properties can continue to be your main residence after the subdivision. Be aware also of the 12mth requirement for CGT discount. If you sell the secondary property within 12mths of subdividing, you will pay the full CGT. There may be options for you to minimise the CGT payable, e.g. by moving income into another year. Again, best to get professional advice. Hi Carma The subdivision process for a duplex is completely seperate to construction. In NSW in some areas you have to apply to council for the subdivision and in some… 1 3975  the exemption applies only to your principal place of residence - so you must live in it. The 200 days is continuous. You also have to apply for the exemption. 2 18272 If it's your primary residence then there is no tax deductions to be made. 4 129472  |
