Question Re CGT
- Thread starter macca446
- Start date
Thanks Terry,I will work with that.
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.
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 50% CGT discount is also subject to a requirement of at least 12 months and in the haste to do this its easy to overlook one catch...Two days are ignored.....Read about it here.
https://www.ato.gov.au/General/Capi...l-gain-or-loss/Working-out-your-capital-gain/
It was a residential mortgagee sale at auction .
Why would the seller's tax position affect the acquisition date for an investor / home owner purchaser?
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".
As I said its VERY rare.
