投资房持有超过一年，分地，两块分别卖出，都能享受50%优惠吗？

hibounce

想确认下，有投资房A，持有超过一年，最近刚分完地，门牌号变成A和B，现在不打算自己造了，想把分完的两块都卖了，请问这两块地都能有50%应税额减免优惠吗？

谢谢

jeff_lawsons

The tax treatment of the gains from property sales will either be:

- Realisation of a capital asset (capital account);
- Profit making undertaking (revenue account); and
- Business profits (revenue account).


The treatment of the gain will depend upon:

- The circumstances surrounding the property gain; and
- The circumstances of the taxpayer.

Generally, if the property was initially held as an investment purpose and subsequently was subdivided without undertaking further development activities (construction of new buildings), it is more likely that the subdivision would be viewed as a mere realisation of a capital asset and therefore be taxed on capital account and subject to the CGT provisions. In this case, you will get 50% CGT discount provided that you are a resident for tax purpose and the property has been held for more than a year.

However, if you have undertaken further development activities which are too significant or the activities are part of an organised series of activities, it could be considered as a profit making undertaking and the net profits would be assessable ordinary income. In this case, you will be assessed on revenue account on the 'net profit' made on sale of the property. Also, since you have subdivided the blocks, it is likely that you are carrying on an enterprise for GST purposes and the sale of the blocks of land would be a taxable supply. You need to register for GST but you may be able to apply the margin scheme.


Since the property was originally acquired and held as an investment property (ie, on capital account) but are now held on revenue account as part of a profit making undertaking then the tax treatment is not entirely clear. However, my understanding is that the tax treatment would generally be determined as follows:

- Determine the market value of the property at the time you decided to carry out the profit making undertaking.

- Calculate the profit made on revenue account by comparing the sale proceeds with a reasonable portion of the market value of the property at the time your intention changed. The CGT discount will not be available for this portion.

- Calculate the gross capital gain on sale by comparing the sale proceeds with a reasonable portion of the cost base of that block of land. Reduce the gross capital gain by the amount that is being taxed on revenue account. Then apply the 50% CGT discount to calculate the net capital gain.


The dividing line between a mere realisation and profit making may not be so easy to define if this subdivision is part of an organised series of activities and there is a profit making intention. There is a risk that the gain could be assessed on revenue account.

You may consider seeking ATO private ruling or seek specialist advice on this issue.