All Topics / Help Needed! / CGT event and CGT Discount

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  • Profile photo of runnymanrunnyman
    Participant
    @runnyman
    Join Date: 2012
    Post Count: 4

    Hi all,

    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!

    Profile photo of runnymanrunnyman
    Participant
    @runnyman
    Join Date: 2012
    Post Count: 4
    Benny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Runnyman,

    Found this just today on ATO website:-

    https://www.ato.gov.au/individuals/capital-gains-tax/cgt-events/

    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).

    Benny

    Profile photo of runnymanrunnyman
    Participant
    @runnyman
    Join Date: 2012
    Post Count: 4

    Thanks for the advice Benny, I’ll get onto the chat function for confirmation of this.  All the best!

     

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    It is generally the contract dates – but not always.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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