Hi guys,
I am trying to do "what if" scenarios on a property to see what potential profit would be achieved If i subdivide. Need to work out what CGT would be paid if I subdivide and sell .
Facts are:
ie surely the cost base of the vacant block is not equal to the full $293k??
is the cost base on 50% of the $293k given i am subdividing it 50% or even less given that the house and land still remains which would be of greater value?
thanks
I am trying to do "what if" scenarios on a property to see what potential profit would be achieved If i subdivide. Need to work out what CGT would be paid if I subdivide and sell .
Facts are:
- Land size = 800m2 with 1 freestanding dwelling on it.
- Wish to subdivide, creating two 400m2 blocks, one with the house and the other a vacant block.
- I then wish to sell the vacant 400m2 block only
- original land with house purchased 5 years ago for $293,000.
- Assume sale price of vacant block less selling costs = $300,000
- Assume my tax bracket is 42%
ie surely the cost base of the vacant block is not equal to the full $293k??
is the cost base on 50% of the $293k given i am subdividing it 50% or even less given that the house and land still remains which would be of greater value?
thanks