Pre CGT IP sudivided post GST

Discussion in 'Accounting & Tax' started by Coconutwheels, 2nd Feb, 2020.

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  1. Coconutwheels

    Coconutwheels Well-Known Member

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    G'day,

    Have a question, can't seem to find anything with the search function:

    IP bought early 80s, was subdivided early 90s and new house built IP also (battle axe block). Looking to sell the original house now, keep the newer 90s house for now.

    What are the tax implications? Broadly.

    My uneducated guess was, need an appraisal/valuation at time of the subdivision for land component of the new block, the new house build and that land val forms the cost base of the new property and the old house should be still CGT free??
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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  3. Mike A

    Mike A Accountant Business Member

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    Dont forget the GST valuation and that MUST be done by a registered valuer NOT a real estate agent
     
  4. Ross Forrester

    Ross Forrester Well-Known Member

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    If you own a residential rental property that was rented from the early 1990’s the sale will not attract gst.

    a valuation of the seperate 1990’s home asset will be needed on sale as that is the cgt event. The new home is a seperate asset.

    the land should still be pre cgt. The subdivision of land does not change the pre cgt nature of the land.
     
  5. Coconutwheels

    Coconutwheels Well-Known Member

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    Whoops yes I meant pre CGT......to many home brews last night! I'll check out that link thanks, turns out my search skills where also a bit off.

    Any mods there that could edit the thread title please? @Simon Hampel @geoffw
     
  6. geoffw

    geoffw Moderator Staff Member

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    Thread title changed.