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 ) .
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]
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 !!!!!!!!!