Is CGT applicable on new home build?

Hi All,

I bought a house with land 1400 sq m more than a year ago.
Now I plan to subdivide the land into 2 seperate title blocks in a battle axe configuration.
And then build 2 new homes after demolishing the existing.
All this long, it has been an investment property with tenant living in it.
How will the CGT works out If I sell it?
I believe for the dwelling at the front, I should get 50% CGT disc. However land & dwelling at the rear is completely new, so will the CGT still be 50%?
Thanks in advance.
AG11

 

Complex. Best to seek paid advice from a tax professional

 

Don't forget any liability for GST as well.

 

Its not actually that complex. Its likely a isolated profit making intention and a intention to construct 2 dwellings. Definately a area for advice. I have provided our developer toolkit which helps basic understanding prior to advice based on personal circumstances. In its worst case NEITHER dwelling will be a CGT asset and there is no main residence exemption and GST also applies to sales.

Why didnt you get tax advice prior to commencing the enterprise ?

 

i doubt you will get a 50% cgt discount on either of them.

actually i'll qualify that it will depend on intention when purchased. might be subject to both revenue and capital gains tax. revenue most definitely.