Land

Question 1

Allowable deductions for land

Answer 1

Cost of revenue account property
Value of land before undertaking
10% of profit each year land owned

Question 2

Land acquired with intention or purpose of disposal

Answer 2

The amount derived from disposal is income

R & B Exclusion

Question 3

Land Acquired for Business

Answer 3

If the business is developing or subdividing then income

R & B Exclusion

Question 4

Non- Business land - Dealer developer

Answer 4

Income if the land sold within 10 years od acquisition
Can also be associated person
R & B Exclusion

Question 5

Non-business land - Builder

Answer 5

Land sold within 10 years of completion of improvements made to land/Buildings
R & B Exclusion

Question 6

Residential Exclusion

Answer 6

Will not be income when dwelling house on the land and is occupied mainly as a residence by a person
Up to 4500M2 of other lands

Question 7

Business Premises Exclusion

Answer 7

Will not be income when premises are occupied mainly to carry out substantial business

Question 8

Development or Subdividing scheme

Answer 8

Will be income if more then minor development or subdividing commenced within 10 years of acquisition

Question 9

The bright-line test

Answer 9

Applies to residential land with a dwelling when sold within 5 years of acquisition (INCOME)

Question 10

The bright-line test exclusion

Answer 10

The main home exclusion

- Not income if it was the main home

Question 11

Land Disposal Deductions

Answer 11

Cost of Land
Development/Subdivision costs
Building Costs
Cost of sale