Brisbane splitter numbers / tax

Hi all, just running some numbers here. I have a 840sqm block in Chermside West that I bought in 2013 for 570k. I have had subdivision approval for 2 x 420sqm blocks for nearly 12 months.

Current value as is is about 650k. If I spend 100k going through with the subdivision I will end up with 2 blocks valued at about 800k to 820k.

Assuming I sell both the vacant lots is CGT as simple as 570k + 100k (subdivision cost) = 670k purchase price with sale price of 820k?

 

1. Unlikely CGT is involved (? maybe) and it may be unwise to do more than seek council approval and sell with approvals and not otherwise affect the land. You want to avoid a profit making intention. But if its vacant land the issue may already be a concern.
2. May be ordinary income tax and timing of when sold may affect marginal tax rate
3. GST likely to be involved and will affect the numbers.

Explained in our developer toolkit

Your numbers are a bit rough. The costs to acquire, selling costs etc and other matters may all affect the calculations

 

Thanks Paul, there is currently a tenanted house on the property. Maybe sell as is with DA approval might be the best option.

 

I would start with tax advice. It most likely would confirm that view. Maybe less overall profit BUT with more certainty, less holding time and less tax Most likely then a CGT event also at 50% discount eg no GST etc.