An acquaintance has been approached by a developer to purchase his business premises which has been rezoned to high density residential.
He had a very low entry point as he purchased over 25 yrs ago but it is a post cgt asset. Other than repairs and maintenance he has done little to the property in this time.
I haven't clarified whether he trades from the same entity or if the business (professional services) sits outside of this.
Can he reduce the amount of cgt payable on a development site by offsetting value of the property by accepting thae site's value in units + cash?
Example: paid $500k 15 yrs ago. mkt value $2m
Can you take $500k + 2 units @ $750k without incurring / minimising cgt?
He had a very low entry point as he purchased over 25 yrs ago but it is a post cgt asset. Other than repairs and maintenance he has done little to the property in this time.
I haven't clarified whether he trades from the same entity or if the business (professional services) sits outside of this.
Can he reduce the amount of cgt payable on a development site by offsetting value of the property by accepting thae site's value in units + cash?
Example: paid $500k 15 yrs ago. mkt value $2m
Can you take $500k + 2 units @ $750k without incurring / minimising cgt?
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