I was speaking with someone who knows we have a double block, who told me that a vendor they knew wanted to sell a similar double block to a developer. In an endeavour to spread the sale over two financial years, they asked for one block to be sold end of June, and the other block at the start of July.
I have always thought this is how we could sell our block, if we don't build on it ourselves.
This person told me that the developer buying the two blocks wanted to ensure both blocks were tied up, so the contract on the first one stipulated somehow that the second block would be sold. I don't know the wording or how this was done. I don't know if it was some sort of option either. This story came third hand.
However, the end result was that it backfired and the ATO treated both sales as having the same date, or treated them as one sale, i.e. no saving was made by trying to spread the sale over two financial years.
I guess this makes sense because any developer wanting both blocks isn't going to risk tying one up without an assurance of getting the other.
You would think though that you could sign one contract on 30 June without tying it to the second one, and if the vendor doesn't sign the other contract on 1 June, then the purchaser pulls out of the first one.
Any thoughts on this?
If we don't do our build, I don't want to sell both in one financial year if we can get around it somehow, legally.
We hand over so much in stamp duty, land tax, income tax and capital gains tax already.
I have always thought this is how we could sell our block, if we don't build on it ourselves.
This person told me that the developer buying the two blocks wanted to ensure both blocks were tied up, so the contract on the first one stipulated somehow that the second block would be sold. I don't know the wording or how this was done. I don't know if it was some sort of option either. This story came third hand.
However, the end result was that it backfired and the ATO treated both sales as having the same date, or treated them as one sale, i.e. no saving was made by trying to spread the sale over two financial years.
I guess this makes sense because any developer wanting both blocks isn't going to risk tying one up without an assurance of getting the other.
You would think though that you could sign one contract on 30 June without tying it to the second one, and if the vendor doesn't sign the other contract on 1 June, then the purchaser pulls out of the first one.
Any thoughts on this?
If we don't do our build, I don't want to sell both in one financial year if we can get around it somehow, legally.
We hand over so much in stamp duty, land tax, income tax and capital gains tax already.