b

(h) The Smith Family Trust purchased a house on 1,000 square metres in 2010. The trust's beneficiaries, Mr and Mrs Smith and their children, reside there. Over the past year, the trust has subdivided the property into two sections of 500 square metres each and new titles have been issued. The existing house is on one title; the trust has built a new house on the other title. The subdivision work is more than minor. The trust and its beneficiaries are not land dealers, developers or builders. If the new house is sold in 2018, will the sale be taxable? If the existing house is sold in 2018, will the sale be taxable? ( Would either sale be taxable if the trust waits 10 years and then sells the sections