Hi all,
Would like to know to get 50% CGT exemption I know you must hold property for 12 months,my question is does it go from exchange or settlement date thanks as I am trying to get dates right before I put to market.
The CGT assumption applies to a passive owner of an income producing property (ie rents). If the acquisition is for the purpose of development, sub div etc then CGT may not apply at all.
A IP owner can acquire under the CGT basis and later change intent. If so at that time a CGT trigger may occur.....So a CGT asset isn't always subject to CGT. It can be subject to tax on a revenue basis instead (ie no discount) Or maybe some CGT and some revenue.
The 12months has a catch. Was the disposal by the former owner a CGT disposal or was it a domestic residential sale ?? Was it a revenue sale (ie a builder / developer). These issues can affect the CGT acquisition date.
The 12months has a catch. Was the disposal by the former owner a CGT disposal or was it a domestic residential sale ?? Was it a revenue sale (ie a builder / developer). These issues can affect the CGT acquisition date.
The 12months has a catch. Was the disposal by the former owner a CGT disposal or was it a domestic residential sale ?? Was it a revenue sale (ie a builder / developer). These issues can affect the CGT acquisition date.
A non-arms length sale between two related or unrelated parties (even on revenue acct by one) may affect the date too. ie the contract date wasn't the date where acquisition occurred. eg ATO determines that the contract merely facilitates what was otherwise agreed in a different form earlier for example. ie a "contract" to later contract. It may not be a concern and is rare. But its one of those blind assumption issues that sometime affect tax issues. Another example is "all pre-CGT assets aren't taxable".