We bought our residential 10-acre property about 12 years ago and sold it last November.
Reading information about CGT and what is exempt, it seems only the "non-residential" section of land that exceeds 5 acres is subject to CGT.
However, we are not sure (and nor is my accountant), on specifically how we determine this. We did not get a valuation when we purchased or when we sold as we had a cash buyer.
My simplistic understanding is that;
- We identify the 5 acres covering the house/sheds etc
- The remaining 5 acres is subject to CGT
- We know the value of the land when we purchased and it was vacant.
- I assumed we would need a report to determine the "land-only" value of the 5 acres (which is subject to CGT)
- Subtract 50% of sale price (50% = 5 acres) from the value obtained in point 4
- This would provide a figure that would be subjected to CGT
How accurate is this?
If anyone can provide guidance as to what information I need to gather and the detailed process it would be greatly appreciated.
Thank you.
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