Hello Everyone,
I am preparing a CGT Schedule for a PPOR Sold last year, I just want to make sure we are not making an mistakes in Tax Return.
Scenario:
- Owner Bought house and land and Property was settled on 15/12/2015 and Owner lived in that Property for more than 17 months. ( Property was in NT ).
- On 18/07/2017 Property was put on market for Rent, owner moved to QLD due to work and bought another property to live.
- After about 5 Years, Rental Property was sold and settled on 27/08/2022 ( contract date was 20/06/2022)
Questions :
- New Market value : it will be calculated from the day it was first rented so when calculating Market Value, we are going to need a new building value and land value, We got building value as part of the Building Depreciation Report(Total re-Assessed Construction Costs less ineligible plant and equipment from, new law 09/05/2017).
- Land Value: Can we use land value when the land was purchase in 2015. Or do we need to get a new land value re-assessed from 18/07/2017 (date first rented). Do we need to engage a quantity surveyor? or it is possible to get a historical land value from NT Land Title Office.
- 6 Years Rule: Since owner has lived in property for more than 12 months and property is sold within 6 Years. Is owner eligible for 100% CGT Discount ? or 50%, and how do we apply 100% in CGT Schedule in Tax Return .
- Division 43 – Capital Work Allowance and Cost Base Reduction: Owner has been claiming capital work deduction (Building Depreciation) In last 5 tax returns which amounted to $33,000, Do we need to reduce the cost base by this total amount.
- CGT Event - Contract Date or Settlement Date: We take CGT Event as of contract date (20/06/2022) , not a settlement date ( 27/08/2022 ), it falls into a different financial year.
Thank You so much in advance.
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464 views
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