Subdivided property

[Kdan]

We purchased a property on one title as our family home, after 12 months we divided the house and land into two separate titles. Land and building. We sold one of the properties and continued living in the other one.
I am unsure of our tax obligations.
I have spoken to an accountant who did not seem to have knowledge of this situation.
I am interested to hear if anyone has advice?

[donna]

Hi Kdan,

Welcome to PropertyTalk - the answer is simple - get another accountant, one that knows the variances with property and taxes e.g. GRA or Rosco (username on PropertyTalk) or Antonyacat (username on PropertyTalk)

regards,

Donna

[Rosco]

Hi Kdan,

Starting point is if you subdivide and sell, then any gain is taxable.

But there are some great exemptions, especially for personal home.

Most likely there is no tax and no GST in your situation, but you would need to give all the information to a property accountant, so they understand all the facts before giving a definite answer.

Ross

[Anthonyacat]

Nothing further to add above Ross' message above. You're probably fine, but it'll not cost much to get a full view and is probably worth it.

But seriously consider getting a new accountant if you're expecting to have more property dealings. Subdivisions are a specialist area that not everyone knows about - there are likely other specialist areas that your accountant is lacking knowledge in.

These days I wouldn't have a clue how to help a dairy farmer or gold miner with their tax work, I'd send you to a rural-specialist accounting firm or a big firm like BDO. I know others who refer property clients to me.