capital gains in different years

hi, my family is selling a property to a developer.
if he gets a 10% deposit in 2009/2010 year and say the remainder (settlement) in the in the next financial year. for capital gains purposes is the income separated into each financial year??
 
Hi,

The whole of the Capital Gain would be assessed in the 2010 financial year. A Capital Gain is triggered on the date of a signed contract and all conditions have been satisfied.
 
Hi,

The whole of the Capital Gain would be assessed in the 2010 financial year. A Capital Gain is triggered on the date of a signed contract and all conditions have been satisfied.

i probably didn't give enough information
the developer can still pull out of the contract for up to 2 years, if he cannot get the DA approval etc. So that could mean we would only receive say the non-refundable deposit and nothing else, but once the 2 years are up, then he has to pay the remainder. So is this when the capital gain is assessed? is the deposit assessed then also?
 
This is a question for a solicitor.

The ATO states contract date. You may find you have to pay CGT before the sale money is received. If the sale falls through, you would probably get a refund.
Marg
 
This is a question for a solicitor.

The ATO states contract date. You may find you have to pay CGT before the sale money is received. If the sale falls through, you would probably get a refund.
Marg

i have calculated the capital gain and it is about $610,000 under 4 names. Tax will be approximately $226,000 on top of their normal PAYG. How do you fork out $226,000 before you receive the money? seems unreasonable and we just dont have that money around.

Will definitely go see a solicitor...Thanks both of you for your help
 
Tax will be approximately $226,000 on top of their normal PAYG. How do you fork out $226,000 before you receive the money? seems unreasonable and we just dont have that money around.
Your problem is confusing "ATO" and "reasonable". :D
navjit6 said:
Will definitely go see a solicitor...Thanks both of you for your help
Yes, you need to talk to a solicitor (protecting legal interests) and an accountant (with regards to tax implications). It may be that by doing it via a different mechanism - eg put and call options - that you can achieve a better outcome with regards to CGT.
 
TD 94/89

The practical workaround.

However, put and call options are probably better for most parties.

Cheers,

Rob
 
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TD 94/89

The practical workaround.

However, put and call options are probably better for most parties.

Cheers,

Rob


Thanks for the TD. my interpretation of the TD is that complete 2009/2010 normal tax return. Within 1 month of settlement of contract (2011/2012 tax year) send an amended 2009/2010 tax return. Can someone confirm? Also any interest accrued would not have to be paid?

Can you briefly explain how put/call options would be better for seller and the buyer?
 
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