I need to know how to work out the CGT (Australian taxation) of the following.?

troublesband · 13-04-08

Mike inherited a property worth $350K (land valued at $250K, building at $100K) back in 1984. He spent $200K on an extension to the bulding in 1986.He sold it in May 2007 for $800K (land $500K, building $300K).I'm aware of the pre 20 Sep 1985 rule, however how would the extension whih was done after this date affect my position? Do I have to apportion the extension against the initial value or sale?Really struggling to get my head around this!Cheers

hubertxiv · 13-04-08

The property was inherited prior to September 1984. There wiould be no CGT liability.The building and extension cost $300 and sold for $300.No CGT.

MrsYellowDango5008 · 14-04-08

The extension is a post 85 asset, sorry, and it is a separate asset from the rest of the pre 85 stuff. And you need to calculate the CGT accordingly. Here is the reference http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s108.70.html

adminaus123 · 04-01-12

Hi

This is not cheap for sure and way you look at building it takes longer to buy my uncle bought one bought1or house 2 years ago and only just recently completed building, buying it costs a hell of a lot of money and its not cheap it is not IMsigurni sure exactly which are cheaper