Forum Replies Created
Terryw,
Thanks, that’s what we’re aiming to do.
Lisa
Terryw,
Thanks, will do.
I imagine my parents will sell up within the month if all goes well.
Lisa
Hi Mr5o1,
Thanks for that info, it makes a lot of sense.
I was reading through some of the paperwork from the lawyer and it explained how the contract can be signed after 1st July 2011 in order to prolong the time required to pay CGT. I had no idea what this meant but your explanation makes perfect sense. It is good of the Developer to provide such an option and we’ll be sure to use it to our advantage.
Hi Terryw,
I would be interested to hear what your ex ATO friend had to say about the matter. If you wouldn’t mind asking him I would really appreciate it.
The property is a farm but it’s not being used to produce anything that would bring in income, it’s more of a hobby farm.
I believe the land here will certainly increase in value in the future but I don’t know how long that will take. A farm is a huge responsibility for my parents and it’s now a bit too much for them to handle and that’s why they want to sell sooner rather than later.
I think our lawyer mentioned that the CGT may be reduced because the CGT-exempt house plus two hectares is actually worth more relative to the rest of the property. I didn’t think the cost of your house impacted the CGT owed on the rest of the land. I will look into this.
Anyways, thanks again to both of you for your advice.
Lisa
Hi Terryw,
Thanks for your reply.
I live overseas and am home visiting for Christmas. Whilst here I’m trying to investigate my parents’ options because neither of them have any idea what the best thing to do is. I myself have a scientific background so all this property jargon is pretty much going over my head too! I am trying to read as much as I can to educate myself (just finished Steve McKnight’s Book and that’s how I came across this forum) but I’m not moving forward at any great pace.
My parents have been in touch with both a lawyer and an accountant but they have both been random selections from the phone book. Unfortunately my parents don’t know anyone who’s “good”. Both the accountant and the lawyer have said that there isn’t anything my parents can do to avoid paying CGT. I don’t know if there’s much point in getting a second opinion.
I don’t understand what you mean by selling to a trust now. What exactly is a trust? And if we sold it to a trust wouldn’t we still have to pay CGT?
Please excuse my lack of knowledge, this is a huge learning curve for me!
Thanks,
Lisa
