Browse Forums Home Finance 1 Apr 11, 2011 4:59 pm Hi all. We are buying an investment property on long settlement (9 months) with intention to subdivide it. Settlement is on 31 May 2011. DA application was lodged couple of weeks ago. I got few questions about CGT related to selling block with approved plans. I understand how CGT calculates but some details are not clear. - Who defines the cost base for a new lot? - To get 50% CGT discount you should own the asset (block) for more than 12 months. But what is the start and end date of this period? Sign contract, settlement or subdivision date? I tried to contact my accountant but he is not very confident in this area. As well I tried to arrange appointment with bantacs but they have few weeks waiting list. Please help or advise a subdivision tax professional in Melbourne South East. Regards Kirill Re: CGT Questions 2Apr 11, 2011 9:23 pm The 50% discount is calculated from contract date to contract date, settlement is irrelevant. The sub division is not a CGT event. There needs to be some sort of apportionment to calculate the cost attributable to the sub-divided lots. If the blocks appear of equal value then just apportion on area, if there is some reason why one block is worth more than the other then a valuer should be engaged to apportion. Slab Down: 2/6/11 Moved in 13/3/2012 Current Status : Waiting for the garden to grow. My build thread : viewtopic.php?f=31&t=47031 Re: CGT Questions 3Apr 12, 2011 12:56 pm ksm2004 I tried to contact my accountant but he is not very confident in this area. Ring the ATO - they can answer all your questions for free. Their website has a lot of info on CGT too, especially relating to property. Re: CGT Questions 4Apr 12, 2011 6:52 pm kek ksm2004 I tried to contact my accountant but he is not very confident in this area. Ring the ATO - they can answer all your questions for free. Their website has a lot of info on CGT too, especially relating to property. 99% of the time when you ring the ATO you get someone with minimal training who just reads info off the ATO intranet. If you hang up and ring back you will probably get a different answer and interpretation. Contact an expert if you want an answer to rely on not an anonymous ATO staff member. Slab Down: 2/6/11 Moved in 13/3/2012 Current Status : Waiting for the garden to grow. My build thread : viewtopic.php?f=31&t=47031 Re: CGT Questions 5Apr 19, 2011 2:22 am Crow The 50% discount is calculated from contract date to contract date, settlement is irrelevant. The sub division is not a CGT event. . 1. Look at crows answ- perfect ! too the tee! 2. For the value; the ATO will ask for you to apply for a certified valuer to go out to the place and get the place valued. you have to make sure the valuer is resisted with the ATO for CGT purposes...not all valuers are Regards michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: CGT Questions 6Apr 19, 2011 7:33 am Crow kek ksm2004 I tried to contact my accountant but he is not very confident in this area. Ring the ATO - they can answer all your questions for free. Their website has a lot of info on CGT too, especially relating to property. 99% of the time when you ring the ATO you get someone with minimal training who just reads info off the ATO intranet. If you hang up and ring back you will probably get a different answer and interpretation. Contact an expert if you want an answer to rely on not an anonymous ATO staff member. Actually, you can always request answers in writing - and those you can rely on. Plus the answers to most questions are on the website anyway. It's always worth educating yourself if you're investing big $$. "Experts" can still get it wrong and guess who's liable for any tax shortfall then? Re: CGT Questions 7Apr 19, 2011 11:43 am True, Maybe shoot them an email? im not sure if ATO responses to email or not tho.... Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Personally, considering your layout (study/work desks in bedrooms), I don't think you have any other option but to leave NW windows and make them as big as possible e.g.… 7 10470 We had this happen to us last year and got charged a variation. Try and give away as much as you can that is usable to charity otherwise if you are in Sydney I have a… 1 4501 Not sure what council area you are in. Some LGA's allow zero lot retaining walls. This usually occurs in greenfield developments but not often in established areas. You… 1 8245 |