Hello everyone,
I have a question about CGT, if i sell my IP today 16 June 2004 and sign contract, will i pay CGT 2003/2004 or 2004/2005. (And settelment day is 30 days.)Thankyou Dom[biggrin]
Hi,
No expert, but I’m pretty sure that if you sign on the 16th June, but settlement isn’t until 16th of July, then you won’t need to pay tax until you get your tax done for the 2004/2005 financial year, as that is the year you will receive the money.The CGT event is signing the contract, so that the profit must be accounted for in the financial year the contract is signed.
See ATO website
Hi Salicious,
As today is still within the 2003/2004 fiscal year, you will need to include the income from the sale to your 2003/2004 tax return!!!! Regardless of when you settle!! [blush2]
When you actually PAY it will depend on when you lodge your return, and if you have a tax representative do it for you (i.e. accountant or tax agent) you have UP TO April 2005 to lodge before penalities are incurred!! [rolleyesanim]
Cheers,
Jo
Hi Monopoply,
So you are saying that i dont have to lodge my tax return for 2003/2004 until April 2005?And so the actual signing of contract by both parties is when that finacial year is applicable for CGT?(2003/2004)
Thanks Dom[biggrin]
Originally posted by SALACIOUS:Hi Monopoply,
So you are saying that i dont have to lodge my tax return for 2003/2004 until April 2005?That’s right, provided you don’t do your own return but use a registered tax person, you have right up to 30 April, 2005.
And so the actual signing of contract by both parties is when that finacial year is applicable for CGT?(2003/2004)
Correct again!!! I assumed that you were referring to both parties signing the contract “today” 16/6/04 as per your post.
Cheers,[sunny]
Jo
Thanks monopoly,
Thats where i am heading off now to sign contract. Thats good news for me as i have a other property for sale at auction in july.Dom[biggrin]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
