Selling off one of two adjoining titles - CGT?

Hi guys.

Lurker of this great forum for a while. First post.

I have the opportunity to buy two adjoining properties (separate titles). One has a house. The other is just land. I intend to settle there for a while. Just wanting to inform myself for the future and any tax implications if I was to sell the block off at some stage. Say for downsizing in retirement.

Thanks in advance.
Carlo

 

Can't be a main residence without a residence.
Could be main residence exemption if both lots sold same time to same person

 

I recall that Harry Triguboff (or one of that ilk) won their case against the OSR for a similar reason that the land around the house was being used as part of the house (swimming pool, cabana, tennis court etc) even though it did not have a house on the land. Admittedly this was for a land tax exemption on land being used for the PPOR however, provided that the land adjoining was being used for ancillary uses in connection with the use of the house as a PPOR, then it may be argued that it is part of the PPOR even though there is no 'house' on the land. Time to build that pool, sauna, cabana, BBQ area & tennis court.

 

land tax is state legislation, completely different to commonwealth tax - but worth considering separately

 

Thanks for your input gents.

 

If the house lot + and lot are a total area under 2Ha and not individually fenced the whole thing would form the CGT main residence and be exempt BUT.....When you later sell off part the historical main residence exemption gets lost on the part that is sold. If you sold all of it to another buyer in a single contract for two titles it could all be exempt.