I have a query about CGT on a house I’ve built interstate. I signed a contract for house and land in April 2005 and settled on the land in October 2005. The house is now complete. Do I need to hold the house until after October 2006 or until after July 2007 in order to get the 12-month 50% CGT discount?
I would have thought it would be from settlement date. But I am not sure.
Someone with more experience that I may be able to answer.
You could also contact the Tax Office with your query.Jules[angel]
JULES1
Email MeUh Oh. See this response on another CGT question in this forum. Here was the answer from 007which may apply to your situation.
He states
“If it’s an IP and you have had it for more than 12 months and it’s not held in a company, then you are entitled to 50% discount on your CG.””
Just to clarify the period of time you hold the asset is not the defining period but the date of the purchase and sale contracts.
You can go to Contract on the 1st January 06 but not settle until 30th June 06 and the resell the asset with a Contract date of 2nd January 07 (settling on the 3rd January 07) and still benefit from the halving of the CGT.”
cheers
[angel]JULES1
Email MeTo re-iterate my previous post the contract date is the date taken in calculating CGT.
Cheers
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