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An individual inherited a plot of land and subsequently subdivided it into three new plots, the value of which was revised upwards for transfer tax purposes. The issue concerns which acquisition value should be applied when calculating capital gains upon the sale of one of these plots.
This ruling clarifies that when land is subdivided, the original acquisition cost and date of the parent property must be preserved for tax purposes, preventing an artificial inflation of capital gains through revised valuations.
The tax team reviews your specific situation.
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