Land – vacant land and subdividing

The tax treatment of land and the proceeds from selling it generally depends on whether it's considered a capital asset or the subject of a business or commercial transaction (such as where it's considered the trading stock of a business dealing in land).

Vacant land is usually considered a capital asset subject to CGT.

However, when land transactions are undertaken as part of a business activity, sale proceeds may be considered ordinary income and be subject to GST.

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Last modified: 14 Sep 2016QC 45084