Hi guys,
Firstly, apologies if this has been repeated before but i was hoping that someone could shed some light as all the examples i've tried to refer to aren't hitting the nail on the head. Basically, my situation is as follows:
I purchase vacant land in 2003 for 110K
Sold this plot of land in March for 210K
Basically, i'm trying to work out my capital gain.
My question is more around how i work out the cost base? Do i add the stamp duty and legal fees i paid? Also, can i claim things like council rates and water rates? Because this was unserviced land, i never earned an income so i paid interest on the loan and also council rates etc. Can i add these expenses also? I know i get a 50% government concession on the capital gain, but just unsure of the other costs i incurred while holding onto this land?
If there's anyone out there that can break this down for me, that would be great.
Thanks in advance
Hi lance1,
You would need to check with a qualified accountant, but my understanding is that all holding costs plus any interest expense as a result of a loan can be added to ascertain the cost base.
Cheers
Tom
lance1 wrote:Hi guys,Firstly, apologies if this has been repeated before but i was hoping that someone could shed some light as all the examples i've tried to refer to aren't hitting the nail on the head. Basically, my situation is as follows:
I purchase vacant land in 2003 for 110K
Sold this plot of land in March for 210K
Basically, i'm trying to work out my capital gain.
My question is more around how i work out the cost base? Do i add the stamp duty and legal fees i paid? Also, can i claim things like council rates and water rates? Because this was unserviced land, i never earned an income so i paid interest on the loan and also council rates etc. Can i add these expenses also? I know i get a 50% government concession on the capital gain, but just unsure of the other costs i incurred while holding onto this land?
If there's anyone out there that can break this down for me, that would be great.
Thanks in advance
Basically cost base is purchase price plus all expenses (unless already claimed) including interest.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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