Just wondering how capital gains and ftb go together. We are looking at the possiblity of buying a large enough property that we can subdivide some of the land off. Now I am pretty sure any money made from the sale (less associated expenses) will be classifed as captial gains and therefore taxed as part of our income. Now this makes it hard to estimate income for the purposes of FTB, basically we need that money during the year to stay ahead until the land is sold, but then I would assume that we would have to pay it all back when the land is sold. It is really an income that cannot be estimated for as it will be unknown when the blocks sell and for how much. I really hope if we go down this path that the blocks will sell in the same financial year.

Am I correct in my assumptions?