Section 121 Capital Gains Exclusion When dividing Property

[Eric Thomson]

Hello all!

I have a tax question regarding the Section 121 2 year capital gains exclusion for primary residence...

The property in question is originally 3 subdivision lots. Wanting to re-divide the property and sell off the additional lots after 2 years. Will this still fall under section 121? I’m reading elsewhere that regular income tax would apply, but unclear if that takes into account the property being a primary residence.