I appreciate the help. We lived in Fiji on an outer island for 14 years. Leased Crown Freehold land for that entire time. The land was undeveloped. My wife and I built our B&B type of resort on this island. Our total construction costs in US$708k. Over the years since 2004 my wife experienced several medical issues which finally forced us to sell in 2018. The resort was sold via Mortgage agreement for 20 years for $900k. Installments for the mortgage started in 2019, but we received a down payment of US$292k +$44k to cover main island expenses to complete the 8 month review by the government, lawyers and finally Registration of the transaction, December 2018. There is a loss at this point on the sale. Installments as I have stated did not start until January 2019. Which I plan to add to 2019's tax report.
Fiji Revenu & Customs Service (FRCS) reviewed all of our files from 2004 to the end of 2018 and issued a their findings stating "We advise that there will be no Capital gains tax (CGT) applicable on this transaction as there is no disposal of the property". We still own the property due to the Mortgage agreement which we hold.
The mortgage is at 4% and the Fijian government receives 10% of the interest paid to us each month.
At this point we have lost money as FRCS discovered. We had no choice in this matter of course.
Again your help is appreciated.
Spence
