All Topics / Finance / Easy question re-CGT

Register Now for My Free Live Training Series!
Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211
    April 2, 2009 - 11:06 pm

    Hi everyone,

    My income is going to drop for the 09/2010 financial year while I take maternity leave.

    I am planning to sell an IP during that time.

    It will appeal to FH buyers so I want to have it on the market while the FHBG is still being offered.

    I fear the grant won't be extended past Jun 30.

    My question is – if I put my IP on the market in late May, sign a contract for sale in late June and then it settles after June 30 will the buyer still be eligible to get the FHBG and will I still be assessed for CGT for the 09/2010 year?

    In other words I want to know, first, whether the FHBG is dependent on the sale contract being signed before June 30 OR the property settling before June 30.

    And I want to know, likewise, if CGT kicks in on the date a contract is signed or on the settlement date.

    Hope that makes sense!

    thanks,
    Carlin

    Profile photo of WJ HookerWJ Hooker
    Participant
    @wj-hooker
    Join Date: 2007
    Post Count: 272
    April 2, 2009 - 11:09 pm

    carlin,
              I believe it is the date you sign the contract for both. But only my guess.

    Profile photo of Dan42Dan42
    Member
    @dan42
    Join Date: 2008
    Post Count: 619
    April 2, 2009 - 11:20 pm

    Date you sign the contract for CGT, I'm afraid. I'm not sure about FHOG.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 3, 2009 - 12:02 am

    Both CGT & the FHOG eligibility are based on the Contract date.

    If the purchase Contract is signed on or before 30 June 2009 then the purchaser is entitled to receive the additional Boost.

    Richard Taylor | Australia's leading private lender

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211
    April 3, 2009 - 11:16 am

    Thanks for the answers….so now I'm really hoping that FHBG is extended beyond June 30 because my IP will be a slightly harder sell without it.

    What are people's views on the likelihood of that extension happening?

    There's been a bit of media about risk of our own sub-prime debacle because the FHBG is overinflating prices, so perhaps the govt's gone cold on the idea….

    Profile photo of jazz77jazz77
    Member
    @jazz77
    Join Date: 2009
    Post Count: 78
    April 3, 2009 - 11:37 am

    bloody media,

    As far as i know the sub prime market in the US made up a much much larger % of the home market than it does here. I think it may have been aroun 15% vs 3%
    They also have the added problem of non-recourse loans. Not to mention the differance in supply and demand for housing. here and in the US.

    I could be wrong but I dont see us being in the same boat as the US housing market. Any of you finance people have an opinion on this?

Viewing 6 posts - 1 through 6 (of 6 total)

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