Apportionment

So we have subdivided a large block (which had an existing house on it), built a new residence on the newly created parcel of land, then sold the original existing house and land.

We've been advised to get an apportionment done so we can calculate CGT on the original house.

My question is who performs these (any recommendations?) and is there any way that we can 'encourage' the person performing the apportionment to provide figures in our favour. Now I'm not suggesting anything illegal, but just ways of making one block of land worth a lot more than the other.

Thanks!

 

Thanks Wylie,

So based on the ATO info the person in that case study apportioned the 2 seperate parcels of land according to 'opinions' of real estate agents.

So is there not a specific qualification for doing these apportionments?

When we purchased the block the selling agent was of the opinion that it was 'impossible' to build on the section of land that had plans approved as it was basically the edge of a cliff. So does this mean that we can say it was originally valued at zero?

Seems like such a grey area. Tax is frustrating.

 

A valuer should probably best used but i dont think you are restricted to using one. Tell the valuer the purposes and they will accomodate to a.certain extent.

 

So terry are you saying that we don't necessarily have to use one as long as we can justify how we came to the apportioning of the land value?

Might call the ATO tomorrow they are always full of useful information.

 

You don't have to but it might work in your favour if you do. You need to work it out on a 'reasonable basis'. This may be done via land sizes, but there may be other factors as well - especially as there was a house on the block.