A mate and I want to purchase a large piece of vacant land with the purpose of getting a DA, OP works, and then subdividing it and selling the new lots of land. We are looking to purchase as a unit trust, but the accountant we saw said we wound not be eligible for any CGT discount, even if we wait 12 months before selling. Example situation Land purchase cost (incl stamp duty) - $200k Civ Works (excl gst) cost - $100k Council fees (3 new lots) - $78k Consulting/Misc - $22k Now let's say we subdivide into 4 lots and sell each land for $150k, net sales = 4x$150k = $600k Let's say we use the margin scheme, and pay GST on the $400k (ignoring input credits), therefore GST = 36k. Therefore total realisations = $600k - $ 36k = $564k. Total Dev cost = $200k + 100k + 78k + 22k = 400k Return = $564 - 400k = $164k % Return on TDC = 41% Now obviously the numbers above are a bit made up, but my question is regarding the profit. If I wait 12 months after purchasing the original land bought in unit trust before selling, is the $164k treated as capital gains and if so be eligible for 50% CGT discount?