Hope someone can assist with a quick CGT question.
I am considering selling my investment property and want to make sure I am eligible for the 50% CGT discount as have not owned the property that long.
Signed contract for Purchase 10th June 2021.
Settlement date 13th July 2021.
Am I correct in thinking that 10th June 2021 is the relevant CGT start event and so I would need to sign the sales contract post 10th June 2022 in order to qualify as owning the property for greater than 1 year. In all likelihood it will be sold pre 13th July 2022 so just want to make sure this date isnt relevant as the CGT event.
Thanks for any advice here!BennyModerator@bennyJoin Date: 2002Post Count: 1,416
Found this just today on ATO website:-
if you sell a house, the CGT event happens on the date of the contract, not when you settle.
i.e. it sounds like you have it right, except I didn’t see anything about BUYING and its CGT date.
That ATO page has a chat function – perhaps check them out re the “Buy date” to be sure that 10June was when the BUYING of the asset was deemed to have occurred. If so, then a selling contract date after 10June should put you in the clear for the discount. (Note, I am NOT a professional adviser – it is just my opinion).
Thanks for the advice Benny, I’ll get onto the chat function for confirmation of this. All the best!TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213