Subdividing and Building vs just Subdividing and selling Section

[SwissKiwi]

Hi all,

If I subdivide>Build>Sell I'm paying tax due to engaging in a development

If I just subdivide and sell title to an empty section am I paying tax?

Grazie,
SK

[Don't believe the Hype]

Best you talk to a good accountant.

There are a number of things that need to be considered.
1 - How long have you held the property
2 - Is it your home (OO) or an investment
3 - What is your intent? - it's hard to argue that your intent of subdivision was not to sell for a profit so hard to say it's not taxable

My first thought would be that you'd pay tax either way but worth investing a few hundred bucks for advice.

[SwissKiwi]

Best you talk to a good accountant.

There are a number of things that need to be considered.
1 - How long have you held the property
2 - Is it your home (OO) or an investment
3 - What is your intent? - it's hard to argue that your intent of subdivision was not to sell for a profit so hard to say it's not taxable

My first thought would be that you'd pay tax either way but worth investing a few hundred bucks for advice.

Ah yes, incomplete info sorry
1 - 12 yrs
2 - Investment - never lived in it
3 - make a lot of money with minimal effort!
(yes i see your point, initial intent was not speculation however.....will see what the accountant says)

[Anthonyacat]

You're probably ok on this one. The Income Tax Act section CB12 states that profits from a subdivision are taxable if the scheme is undertaken within 10 years of the purchase date. You've held it longer than that, so you're not automatically caught by the subdivision tax law.

Speak to your own accountant who knows your full situation to confirm you're not caught by anything else, but looks pretty good to me.