StephenArrowsmith replied to the topic 5% deposit + FHOG = none of my money in a wrap? in the forum The Treasure Chest 21 years, 8 months ago
Jenny
Be careful with your tax treatment .
Firstly CGT only applies to a capital purchase sold after 1 year of being held , technically you are selling on day one ( buy propery and wrap the next day ) but are receiving paymnet of the monies over time so CGT does not apply ( if it did you would be up for tax on whole profit on day one ) .
Also…[Read more]StephenArrowsmith replied to the topic Accounting for Purchasers deposit in the forum The Treasure Chest 21 years, 8 months ago
Bob
I think the scenario you have used is fine but your tax treatment of it may need some clarification .
The paymnet of the monies does trigger a tax issue but the actual tax is based on the profit of the sale over the period of when you receive the paymnets . The profit is Sale less cost of sale ( ie $130k less $100k ) equals $30k profit, this…[Read more]StephenArrowsmith replied to the topic Taxation advice in the forum The Treasure Chest 21 years, 10 months ago
Hey everyone thanks so much for your input and opinions on this matter . This is exactly as I see this forum being used .
From all the replies to my taxation query I now have enough information and contacts to establish a stable and and reasonable position to work from .
Thanks everyone . Your terrific !!!!!!!!!