Government entity offer to buy property

Reason not important.
>purchase of one of our rural property by way of private treaty
>we have two lots - two titles
>no agents commission involved
However property is now not principal place of residence. It was once subject to a boundary re-alignment and part of our current PPOR.
Question is, will CGT be due on upon sale? If so, is there any consideration to the said land originally part of our PPOR therefore a credit in CGT for those years? Has anyone heard of 'parent property'? Thanks
 
How much land are we talking about?

The CGT exemption only applies to land under the size of 5 acres, or 2 hectares. If the property is larger than this then this portion surrunding the house to to 5 acres could be exempt.
 
The issue youw ill have is that you are selling this land separately to your PPOR. This means you won't get the PPOR exemption. Basically you will need to work out the value of the land being sold at the time you purchased if it was purchased as part of your PPOR. If the land ha snot been used to earn income you can increase the cost base by adding things such as the rates applicable to that land, interest on your borrowings etc. Talk to an accountant
 
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