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CGT on property purchased way below market value?

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Matt Hughes | 05 Apr 2016, 03:06 PM Agree 0
I purchased a unit (1st home buyer) off my parents 4 years ago. They sold it to me for half price $225 000 with a written agreement i would pay the other half back. This has since been done +$270 000 =$495 000.

Im an intending on purchasing a home and converting the unit into an investment property.

How in CGT calculated from this period on, obviously I am not currently liable for anything... but in the future when i do become liable for CGT what value is it calculated on?

Original purchase price ($225,000)?
Original purchase price + agreed amount paid to to parents after sale ($495,000)?
Value of property at time of conversion to investment property? (approx. $700,000)

Im really hoping for the 3rd option, if this is the case do i just need to get it valued myself or is it a more complicated process?

Many thanks if anyone has the answer for me

Cheers
Matt
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