All Topics / Help Needed! / CGT – when does 12 months start and end?

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of cruisercruiser
    Participant
    @cruiser
    Join Date: 2004
    Post Count: 43

    Can anyone help?
    If I signed a contract to buy a property in Queensland in July 04, and settled in September 04, when am I over the 12 months hurdle to benefit from the CGT concession – can I sell to another buyer and sign a contract in July 04, then settle before Sept 04? Are the relevant dates from purchase settlement to sale settlement or purchase settlement to purchase contract date, or purchase contract date to sale contract date, or purchase contract date to sale settlement date?
    I can’t find the answer on the ATO site, nor from a quick search of CGT in these forums.
    Any help would be much appreciated.
    Cheers
    Cruiser

    Profile photo of bensonbenson
    Participant
    @benson
    Join Date: 2003
    Post Count: 101

    The contract date rather than settlement date is the important one for CGT calculations.

    Cheers,

    Benson.

    Profile photo of cruisercruiser
    Participant
    @cruiser
    Join Date: 2004
    Post Count: 43

    Thanks Benson.
    You mean, I signed the contract to buy in July 04 so as long as I don’t sign a contract to sell until July 05, then I get the concession?

    Profile photo of bensonbenson
    Participant
    @benson
    Join Date: 2003
    Post Count: 101

    The date the contract has been executed by both parties ie your offer is dated 01/01/05 and the vendor accepts on the 02/01/05 then this is the date (02/01/05) you have acquired the property for CGT purposes. The same applies for the sale of the property.

    Profile photo of cruisercruiser
    Participant
    @cruiser
    Join Date: 2004
    Post Count: 43

    Thank you muchly.
    Regards
    Cruiser

    Profile photo of hmackayhmackay
    Participant
    @hmackay
    Join Date: 2004
    Post Count: 197

    Hi

    Further to the responces My accountant always says that I should ensure there is 12 months and a couple of days just to be sure.

    hrm

    Profile photo of HallwayHallway
    Member
    @hallway
    Join Date: 2003
    Post Count: 6

    If it is for principal place of residence then it doesn’t apply you will have to repay the consession given for stamp duty thats all.

    Profile photo of Don NicolussiDon Nicolussi
    Participant
    @don
    Join Date: 2005
    Post Count: 1,086

    the others have got it right on this one. The dates are from the date of agreement. Thats when the GGT event occurs.

    Cheers

    Don Nicolussi | Mortgage Broker - Home Loan Warehouse
    http://homeloanwarehouse.com.au
    Email Me | Phone Me

    "I think of finance as a technology, a way of getting things done." Robert Shiller

    Profile photo of westinvestwestinvest
    Member
    @westinvest
    Join Date: 2005
    Post Count: 88

    Yep thats how we see’s it ,from offer (contact date)date.
    Regards

    http://www.owner.com.au

Viewing 9 posts - 1 through 9 (of 9 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.