Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

Can you help with a capital gains tax question. We are

Customer Question
Can you help with...

Can you help with a capital gains tax question

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

We are selling 100 acre hobby farm. We are not gst registered and do not make money from it:

Accountant's Assistant: Is there anything else the Accountant should be aware of?

We have been living at this property for 15 years. We are purchasing another block of land and building on it.

Submitted: 6 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 33 minutes by:
1/4/2018
Tax Professional: Barbara, Enrolled Agent replied 6 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,361
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Your ‘main residence’ (your home) is generally exempt from capital gains tax (CGT). To get the exemption, the property must have a dwelling on it and you must have lived in it. You're not entitled to the exemption for a vacant block.

Generally, a dwelling is considered to be your main residence if:

  • you and your family live in it
  • your personal belongings are in it
  • it's the address your mail is delivered to
  • it's your address on the electoral roll, and
  • services such as gas and power are connected.

The main residence exemption is not based on one factor alone, and the weight given to each varies depending on individual circumstances. The length of time you stay there and your intention in occupying it may also be relevant.

You're eligible for a full main residence exemption if the dwelling:

  • has been the home of you, your partner and other dependants for the whole period you've owned it
  • has not been used to produce assessable income – that is, you've not run a business from it, rented it out or flipped it, and
  • is on land of two hectares or less.

https://www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Your-main-residence/

One hectare is equal to 2.47105 acres.

Based on the information you provided, you would not be entitled to the full main residence exemption.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
586 Satisfied Customers
Experience: 10 years experience

Wallstreet Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am selling my acreage that I have lived on since December
I am selling my acreage that I have lived on since December 1993. The land is Block 1 Lot1 ATS REF 4;24;38;4; SE It is 4 acres in the County of Red Deer #23 Alberta. I wanted to know if there is GST t… read more
Bryan M.
Bryan M.
Owner
Masters of Accountancy
159 satisfied customers
I live in Maryland and I am 64 years old. I own a farm in
I live in Maryland and I am 64 years old. I own a farm in Nebraska and am selling it in February of next year. the capital gains will be about 300 to 450 thousand dollars. I am still working and my in… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Capital Gains Taxes. I purchased 80 acres of farmland in
Capital Gains Taxes. I purchased 80 acres of farmland in 1972. In 1999 I built a home on that land. In 2016 I want to sell home and land. A CPA we visited with said we had no Capital gains tax liabili… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
My father is selling s Farm house with buildings all sitting
my father is selling his Farm house with buildings all sitting on 40 acres. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
We sold our house with a block of land next to it no tax on
We sold our house with a block of land next to it no tax on house as was brought 1984 land brought 1986 the land was used for our private use we had garden shed and gardens on it the house and land wa… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I was a partner, with 2 others, in a land investment 10 years
I was a partner, with 2 others, in a land investment 10 years ago. We bought 200 acres of farm land, developed and sold 50 acres. The partners wanted to divide the remaining acreage 5 years ago, so we… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Live on a 60 acre farm in Indiana. Considering selling 57 acres
Live on a 60 acre farm in Indiana. Considering selling 57 acres for a conservation easement. This will be used for wetlands. We have used these acres as cash rent farmland. What is the tax liability o… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Hi, I own a house in NJ with 19 acres of land. For property
Hi, I own a house in NJ with 19 acres of land. For property tax purposes, the house is assed with 1 acre of land, and there is a separate (very low) tax assessment on 18 acres, which is "farm assessed… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,512 satisfied customers
If a person owns a property and sells in order to purchase
If a person owns a property and sells in order to purchase an equal or more expensive property does that person owe capital gains on the sale of the first property… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
We just sold a piece of farm property for a good price, $400,000.
We just sold a piece of farm property for a good price, $400,000. We live and our residence is in St. Paul is worth $300,000.. Can the farm property be used for that one time capital gains exemption… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I sold a piece of raw land owned for more than one ...
I sold a piece of raw land owned for more than one year for 2500,000 then purchased a piece of land for 245,000 which has a house on it. What are the tax ramifications?… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
Dear Ed You just answered a question for me about the ...
Dear Ed: You just answered a question for me about the sale of my parents property. Thank you. How is the capital gain amount determined? My sister is keeping her existing mortgage on the house and 10… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I have 24 Acres with a mobile home on it that I ...
I have 24 Acres with a mobile home on it that I currently reside in Johnson County Texas. I have lived there for the last 7 1/2 years and I have a potential buyer offer to purchase it (less than $500,… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My wifes Grandma has about 350 acres of tillable farm
My wife''s Grandma has about 350 acres of tillable farm land in western Illinois. This land has been in the family for close to 70 years, so not sure of the cost basis, but it is low..Both my wife and… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
I am selling my farm for 600,000 and I owe 340,000 I would ...
I am selling my farm for 600,000 and I owe 340,000 I would like to buy land and build a house and wood shop to build crafts to sell. and maybe buy a rental house for a investement.39122.185271412… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I sold a portion of my primary residence property and then
I sold a portion of my primary residence property and then I bought another vacant peice of land else where. Am I going to have to pay capital gains tax on the land that I sold? In the future I plan o… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My parents are selling 24 acres of farm land they purchased ...
My parents are selling 24 acres of farm land they purchased over 25 years ago. The cost at that time was $1200. It may sell for $6,600. How do we calculate what the capital gains tax will be? Is there… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Selling our farm /Capital Gains/Loss, 1031 Exchange
In 1992- 40.9 deeded acres,we developed the land and built a 2-house 42'x410' Contracted poultry breeder hen farm costing $300,000 just to establish business. Residence must be on site. Have a 1998-16… read more
Jon Andrews
Jon Andrews
CPA
2,926 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x