Hi I am a long time lurker/reader and I'm looking at a IP and trying to understand CGT. The situation is I'm looking to buy a house and land and building a second house on it subdivide and maybe sell. How do you apportion the split effectively you are creating something out of nothing say the land value is 300k does this mean 150 for each IP? So if I spend 250 k to build gives me a cost of 400k. Assume I payed 550 initially could you say the vacant block is worth 250k so your cost is 500k. So I'm getting to the point assume you sell for 700k a profit of either 200 or 300 so which one is correct to calculate CGT? I'm assuming the auditor general would value both blocks at 250 k each once subdivided.Many thanks.