We purchased a PPOR around 16 years ago and the Vendor also owned three vacant blocks of land behind the PPOR. Circa 2 years later we were in a position to purchase these blocks from him (in personal names), mainly to maintain privacy and prevent them being populated with giant McMansions overlooking our yard. One block has a shed (now used for storage) which is accessed via the same ROW our house is accessed (House sits about 15/20 feet above the street).
Time passes and we now live in another state to the house and we are now considering building our own McMansions upon the 3 vacant blocks - the blocks are probably worth 8 times the original purchase price so the cost base is low.
Having spent some time reading ATO judgements/rulings and advice I've become quite confused about whether it would be treated as trading stock or capital asset - income or CGT.
Time passes and we now live in another state to the house and we are now considering building our own McMansions upon the 3 vacant blocks - the blocks are probably worth 8 times the original purchase price so the cost base is low.
Having spent some time reading ATO judgements/rulings and advice I've become quite confused about whether it would be treated as trading stock or capital asset - income or CGT.