INCOME TAX ASSESSMENT ACT 1997 - SECT 108.65 Land adjacent to land acquired before 20 September 1985

INCOME TAX ASSESSMENT ACT 1997 - SECT 108.65

    Land that you * acquire on or after 20   September 1985 that is adjacent to land (the original land ) you acquired before that day is taken to be a separate * CGT asset from the original land if it and the original land are amalgamated into one title.

Example:   On 1   April 1984 you bought a block of land. On 1   June 1999 you bought another block of land adjacent to the first block. You amalgamate the titles to the 2 blocks into 1 title.

  The second block is treated as a separate CGT asset. You can make a capital gain or loss from it if you sell the whole area of land.