I'm about to subdivide my property and looking to see if anyone can answer a tax question for me (before I get the expensive advisors involved). Our house sits on a 66'x132' lot and we're splitting into two 33' lots. Our primary residence is postage stamped on the corner of one of the lots, and our plan is to renovate it. We would then sell the other 33' lot.
Does anyone know how the capital gains tax is applied on that sale? I'm a bit confused by the half hectare rule in my case. My understanding is that since we're staying in our property residence, and since the property is less than a half hectare, the empty lot sale would be tax exempt. Can anybody confirm?