Cost of acquisition where only land is sold after demolishing the building

I have sold a land in 2021 after demolishing the building.  The buyer wanted us to demolish the building before getting the registry of land .

We purchased both the building and land in 1960. 

What should be the cost of acquisition as on 2001.

 

Replies (5)
Quick Summary
This discussion explores how to determine the cost of acquisition for land sold after a building was demolished. The key question is how to value the property as of April 1, 2001, especially when the land and building were purchased together in 1960. The consensus suggests using the Fair Market Value (FMV) as of April 1, 2001, but there's a debate on whether to include the building's FMV or just the land's. The condition of sale (demolishing the building) might necessitate researching relevant case law.

FVM on 01.04.2001 can be the cost of purchase.
Since the base year is shifted , If the property purchased prior to 01.04.2001 , you must obtain the Fair market value as on 01.04.2001 which can be used as cost of acquisition

Will both land and building be included as cost of acquisition 

FMV of only land should be considered
Condition for sale is demolishing the building. So you may search for case law

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