All Topics / Legal & Accounting / 50% tax Sale date

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  • Profile photo of Pro investorPro investor
    Participant
    @pro-investor
    Join Date: 2003
    Post Count: 108
    May 17, 2007 - 7:53 am

    Hi Everyone

                    I've signed a contract on the 1/2/07 it became unconditional on the 1/3/07 and it settled on the 1/5/07 when I go to sell the property next year what date is it that I've owned the property for a year so I only pay tax on 50% of the profit.

    Thanks Rob

    Profile photo of L.A AussieL.A Aussie
    Member
    @l.a-aussie
    Join Date: 2006
    Post Count: 1,488
    May 19, 2007 - 1:20 am

    The Contract date when it becomes unconditional.

    Profile photo of Mark UnwinMark Unwin
    Participant
    @markunwin
    Join Date: 2005
    Post Count: 35
    May 19, 2007 - 1:22 am

    Hi Rob,

    Capital Gains Tax is calculated on the contract date.  To get the 50% discount, you effectively need the property for 12 months and 2 days between those contract dates.  Effectively, a sale after 3/2/08 would have you eligible for the discount provided it is an investment asset.

    Cheers,

    Mark

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    June 1, 2007 - 4:16 am

    Assuming you didnt purchase the property in a SMSF when the discount is only 33% after 366 days +.

    Richard Taylor | Australia's leading private lender

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