Calculating "holding period" for CGT

[Kevmeister]

I'm curious to know what dates are deemed the starting date of possession of an IP and its disposal date?

For example, starting date could be:

1. Date of offer on the property.
2. Date offer is accepted.
3. Date contract is signed by both parties.
4. Date contract goes unconditional.
5. Date settlement is scheduled.
6. Date settlement actually occurs (usually = [3]).
7. etc?

And disposal date could also be any of the above. With the CGT 50% discount a big incentive to hold for > 12 months, my point is in understanding exactly what that means?

 

[DaleGG]

Hi Kevin

For CGT purposes, the strating date is usually the date of the contract. Occassionally, it can be the date that the contract has a condition satisfied, but, for most of us this is not an issue.

Therefore, for the 50% general discount to apply the property must be held for one year and one day after the date of the contract to buy initially.

I hope that this helps

Dale

Originally posted by Kevmeister
I'm curious to know what dates are deemed the starting date of possession of an IP and its disposal date?

For example, starting date could be:

1. Date of offer on the property.
2. Date offer is accepted.
3. Date contract is signed by both parties.
4. Date contract goes unconditional.
5. Date settlement is scheduled.
6. Date settlement actually occurs (usually = [3]).
7. etc?

And disposal date could also be any of the above. With the CGT 50% discount a big incentive to hold for > 12 months, my point is in understanding exactly what that means?