CGT EVents and Entering a contract

[de nero]

The ATO site says that a CGT event occurs when a contract is entered into. (When selling an asset).

At what point is a contract entered into?

 

[DaleGG]

Hi

Generally speaking it is the date that the vendor signs the contract in agreement to the terms and conditions offered by the purchaser.

Dale

The ATO site says that a CGT event occurs when a contract is entered into. (When selling an asset).

At what point is a contract entered into?

 

[de nero]

thanks for the reply

 

[stirling]

Is there a way to delay the signing of a contract til the next financial year. ie post dating the contract.

Or do I just have to say "thanks for your interest in my property, I will get back to you on first of July"

 

[julia]

You can use an option to delay the contract

ATO ruling TD 16 states - If an option is granted the date of the acquisition for the buyer and the selling date for the vendor is the date of the exercise of the option.
Of course an option gives a purchaser the chance of avoiding entering into the contract to buy the property so you must charge a large enough amount for the option to ensure that the purchaser will exercise it after the date you specify.

 

[Ausprop]

and the option fee? is that taxable immediately or when exercised?