Hi,
We have purchased our forever home which sits on 21 acres and are subdividing off 3.5 acres. My previous accountant told me that all I needed was a real estate agent’s appraisal of the value of each proposed block comparable to the purchase price for the declaration of profit. My new accountant initially advised to get a full valuation done however has now told me to engage a tax lawyer which seems a little extreme! We have done substantial earthworks and renovations to a house that was largely a knockdown which would now change the value of the part we’re keeping, so the idea of having a valuation done at time of sale (hopefully late this year) seems a bit unfair.
Has anyone done this before (QLD) with their PPOR and is happy to share how you worked out how to declare the profit margin?
Thank you in advance for any shared information :)
You need to apportion the cost base expenses between the 2 blocks and the best way to do that is to instruct a valuer to do it. The other block has a house on it so it cant be worked out on an area basis. Your valuation would be done as of the date of purchase. Main residence exemption can’t be used on vacant land and can only apply to 2 acres anyway
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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