Profits from Subdivision

[Sewage]

I'm considering subdividing a site with two units... I plan to sell one unit and reducing my borrowing on the other with the proceeds of the sale. I will then keep the second unit which is tenanted and will become cashflow positive.

Will I have to pay tax on the profits of the subdivision? I plan to 'roll' the capital gain into the second property, What are my tax liabilities?

Thanks, Tim

[shanenz]

Indeed you will , unless you develop for the purpose of renting and then whoops find yourself in dire need of cash and have to sell one ..... be carfeull tho and seek some professional advice , or you could just bite the bullet and pay tax