Mark purchased some land in June 1983 for $80,000. In July 2000 Mark constructed a building on the land for a cost of $400,000. Mark sells the land and building for $2 million in June 2020. In the sale contract it is agreed that the value of the building at the date of the sale was $1 million and the value if the land was $1 million. Will Mark have any CGT liability when he sells the land and building?

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The Answer of Mark purchased some land in June 1983 for $80,000. In July 2000 Mark constructed a building on the land for a cost of $400,000. Mark sells the land and building for $2 million in June 2020. In the sale contract it is agreed that the value of the building at the date of the sale was $1 million and the value if the land was $1 million. Will Mark have any CGT liability when he sells the land and building?

Mark Purchased Some Land in June 1983 for $80,000