CGT, Timing, land and property

[Nominees]

Hello,

This is my situation:

I bought a block of ground in December last year. Since then, have built a property on it and was going to rent it out for the next 5 years.... However someone wants to buy the house.

So I was wondering. If I sell them the property do I get the 50% CGT discount , since I would have had the land for more than a year?

I was told the CGT discount is based on the exchange date, so I think I am fine, but does building a property change things?

What is the correct way of working things out?

Cheers,

Nom

 

[DaleGG]

Hi

The CGT discount is based on the date the contracts were signed and this must be 366 days apart to get the discount without falling foul of the tax office.

Bye the way, I'd also ask your accountant about the GST implications of this sale as it could be a nasty surprise . . .

Dale