Anybody reconfigured a block? How do I work out what capital gains tax I would pay?

I think I may have a few questions coming up to help us decide whether to build or sell if we get our DA through.

I'm trying to work the figures for build or sell, but don't know how to do it.

We have two blocks together, each worth probably $900K. We were recently offered $1.8M for them, so let's say $900K each is about right.

Our plan is to keep each house on its own 375sqm (thereabouts) block and create a middle block of about 1000sqm.

Current UCV for the 900sqm blocks is about $550K each.

I'm guessing UCV for the two newly created small blocks of 375sqm may be about $400K each.

Guessing the 1000sqm block in the middle is likely to come in at about $600K.

If we decide to sell one of the houses, we paid for a 900 sqm block and a house. We would be selling the same house on a block less than half the size. How (and who) works out what we would pay in capital gains tax when we are talking apples and oranges. What we are selling is very different to what it started as.

We are selling something that is less than half of what we paid for.

 

Second quick question is how much it costs to actually reconfigure and create titles so that we would have three separate blocks, ready to sell one or more if we wanted to?

I have a printout from BCC but I'm confused by how much gets me to what stage?

Ballpark figure is all I need.

 

Thanks willair. The DA will be through in about four to eight weeks (assuming it is approved). The blocks are two separate titles and we are wanting to reconfigure two large blocks into two tiny ones and a big middle plot with a DA.

I've removed some of my answer, because I think I'm just muddying the waters with too much detail.

What I am looking for is how much would it cost to reconfigure two blocks into three.

I'm very happy to pay for good advice, but just don't know who I need to speak with... ATO, OSR or someone else?

If I can find out how much to split off one house, split off the other house, and how selling one of them is treated regarding CGT, I can continue with my numbers to work out which is the way we head.

In one way, we have too many options and the path forward is not clear.

 

Again, I've removed the waffle as it is just confusing for me, so goodness knows how anybody else can make sense of it.

I'm trying to cost out the various options, but just don't know how the gain will be worked when the land under the house to be sold is less than half what it used to be.

 

Thanks Leo. I've sent an email to our town planner, but was hoping to do some figures this weekend. Thanks for those links. I'm about to read them now, but thought I'd answer first.

Our DA is two into three. I have a friend who has said ballpark $75K (one block split into two). I'm unsure if I'm up for that fee times two because we have two houses, both needing to be moved onto small lots, leaving a big block in the middle.

Or, as it is all rolled into one DA (two stages), whether the fee will be a one off $75K (or thereabouts) for the reconfigure?

As part of the DA, we have paid surveyor, town planner, engineering, BCC fee, building designer, landscape plan, acoustic report, etc. The idea was to get all the ducks lined up in the hope it gets through without having to go back and forth. So we did them first.

My dilemma is we've been approached by a developer who wants the (if approved) DA block plus one house. I'm not sure how much that saves us by not having to lift and shift that house, not having to pay the headworks for the townhouses?

Until I get a good idea of what we are up for, I cannot work out whether we should grab the money and run, or go ahead and keep paying fees and costs and do the build.

I feel quite overwhelmed, not knowing what I don't know. I cannot help but think if I'm this clueless at this stage, how much we could get wrong as we move forward .

 

I just read those pages, thanks Leo. They were quite helpful. I also had an email reply from the town planner and he has undertaken to sit down with us if we get the approval and run through the likely costs we will be up for.

We are probably two to three months from getting an answer, so I'll keep researching in the meantime.