Farmland

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Hi Margaret, my wife &amp; I live on 50 acres we bought the property 20 years ago , built a house &amp; lived in since. We have 10 cows which we make a little money on each year &amp; is the only income of the property. Our main income is away from the property (apart from the office &amp; shed) my question is would we be CGT exempt because we use the other 45 acres for farming, although it's not our main source of income?
Answer: The answer to this question has many parts and depends on a number of circumstances, and so I checked with Property Success tax expert Ian Rodrigues to see what he thought about it. The first this to check is the actual date that you purchased the property.  It appears to be after they introduced the Capital Gains Tax rules but that is worth checking first as if it was before, then everything changes.  It's also important to know if you bought the property or if it was passed to you, perhaps through an inheritance as this impacts as well. The Principal Place of residence exemption should apply to the house and surrounding land up 2 hectares (about 5 acres). You mention an office and shed - were these rented out, or did you use them for conducting any kind of business, and subsequently claim any proportional deduction on them?  If you did then this will mean that a part of your principal place of residence will be considered to be liable for capital gains tax and this will need to be established. The rest of the land outside the 5 acres are subject to CGT regardless of how they were used. There are major issues to consider here in regard to:-         1. was farming a business for tax (and so, what went into your tax returns?). Small business CGT concessions could apply here and         2. what is the valuation split of PPOR and acres? Sometimes the house is the substantial part of these acres and therefore carry the much of the value of the entire block, and at other times the acres are prime land and therefore make up a substantial part of the calculations.  Your situation is a little complicated,  and it is absolutely critical that you get advice based on all the facts of this situation. Although the outcome may end up the same, you need some serious planning put in place, as you may have access to small business CGT rules and super rollover rules too. 
Have a property question?  <a href="mailto:%20&lt;script%20type='text/javascript'&gt;%20/n%20&lt;/script&gt;&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;This%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

CGT exemption and farmland: Ask Margaret

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Camm Agricultural Group is selling off its major cropping operation, Morocco near St George in Queensland.
Situated north of St George, Queensland, <a href="https://property.cbre.com.au/properties/surat-qld-4417/" target="_blank">the property</a> represents a significant irrigated and dryland cropping.
There are price expectations of around $18 million, following the family’s recent decision to divest its northern cattle properties to Rural Funds Group.  
A key feature is the 5,340 megalitre water allocation which, coupled with a reliable river system and ample on-farm water storages, completes a productive irrigation enterprise.
The 5,939 hectare farming property is located along the renowned Balonne River and accessed via the Carnarvon Highway.
The Camm family acquired Morocco for $10 million in 2006 from the Mobandilla Land company.
The decision to sell follows the family selling three cattle properties in central Queensland for $72.5 million to the listed Rural Funds Group.
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j.ballantyne1990-6AQqhLzZaK

Camm family list Morocco cropping farm near St George

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Vergemont, a 352,590-hectare cattle grazing property near Longreach in central Queensland, has come to market.
It last traded for $6.5 million in December 2012 when sold to the Bode family by the Logan family.
Its previous owners include North Australian Pastoral Co Pty Ltd,  one of Australia's largest and privately-owned cattle companies.  
Vergemont is being marketed by CBRE's Geoff Warriner and Wally Cooper of Western Livestock.
The sale includes 2000 head of cattle.
The property hae the capacity to hold up to 10,000 cattle.
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