Hi can anyone help, we purchased a block of land, exchanged contracts over a year ago and settled/registered in June 2016. We had contracted a builder paid a small deposit, got the plans drawn up. However our circumstances have now changed and the location no longer suits our needs.
We want to pull out of the contract (spoke to our builder today and that will be possible) and sell the land. However, our land has gone up substantially since we exchanged last year and looking at a nice profit to put to a house purchase. Our solicitor today informed us we would have to pay CGT on the sale. This has rocked us, something of all the scenarios we did not think about. We own no other property this is the only property we own and obviously can not live on it as our main residence. From what I have read tonight we have to pay full CGT on any profit we make. I will speak to our tax consultant tomorrow but has anyone had any experience of this?? Is there anything we can do to reduce the CGT other than going ahead with the build and living there for a few months.
Thanks in advance.
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Browse Forums Real Estate Re: Capital gains tax on vacant land sale 2Aug 09, 2016 12:28 pm If you hold the asset for >12 months you only pay CGT on 50% of the gain, otherwise you will pay CGT at your marginal rate. the exemption applies only to your principal place of residence - so you must live in it. The 200 days is continuous. You also have to apply for the exemption. 2 18326 I'd try posting it on airtasker. I am sure you will find someone willing do take them for a couple of hundred $ 1 5666  If it's your primary residence then there is no tax deductions to be made. 4 129492  |
