I purchased a block of land and then looked for a builder. Land component is $240,000. Build component is $324,726. The original intention was to live in the property once finished.
The timeline of events:
July 2021 – Land settlement takes place
May 2022 – Building contract signed and deposit paid
November 2022 – Construction started.
July 2023 - Occupancy Permit received.
As it took so long to get the property built, we are now selling the property brand new.
My questions are:
- What components of the house and land are liable to CGT if I sell?
- This is a joint property, so how do I enter the information on the tax return? 50% of cost / revenue for each party?
Example: House Cost $ 564,726 Sale Proceeds $750,000
Personal tax return Cost $282,363 Sale proceeds $ 375,000
- I entered the information in my tax return and it keeps on warning me that: “the total current year capital gains” on the capital gains tax schedule must equal the total current year capital gain” – no quite sure how to proceed. I used the CGT calculator, like I did for shares but the system does not want to accept the information.
Thank you
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