Capital Gains: What are the CGT consequences of sub-dividing pre-CGT land?
1
Where pre-CGT land is sub-divided after 19 September 1985 the land will maintain its pre-CGT acquisition date because no CGT event has happened. The subdividing of the land is not itself a CGT event: section 112-25 of the ITAA97.
2
In such cases, subsections 108-70(2) and 108-70(3) may have application. Note: Profits from the sub-division may be taxed as ordinary or statutory income under sections 6-5 or 6-10. Note: The Addendum to this Determination that issued on 10 March 1999 amends this Determination from the beginning of the 1998-99 income year to change section references and terms used in this Determination to those used in the Income Tax Assessment Act 1997 (ITAA 1997).