Vendor Exit Tax

[jennyn]

I did a search for this but couldn't find what I was looking for.

In NSW when you sell an IP do you just pay the 2.25% vendor exit tax or do you have to pay that AND CGT?

Jenny

 

[Jamie]

I did a search for this but couldn't find what I was looking for.

In NSW when you sell an IP do you just pay the 2.25% vendor exit tax or do you have to pay that AND CGT?

Jenny

Unfortunately, you have to pay both

Jamie.

 

[buzzlightyear]

The cost of the new exit stamp duty (2.25%)when selling your IP however, can be added to the cost of acquisition (cost base) for the purposes of calculating capital gains tax......Therefore reducing your capital gain liability.

 

[Jacque]

The sooner this tax goes the better...
But we can all guess what's going to happen. The Carr govt will probably pull it just prior to the next election as a way of keeping our votes.
Grrr....

 

[jennyn]

Thanks very much for your replies

 

[Peter 14.7]

The sooner this tax goes the better...
But we can all guess what's going to happen. The Carr govt will probably pull it just prior to the next election as a way of keeping our votes.
Grrr....

COuld be a good time to buy back in though. Next election March 2007. Only two years away.

Assuming rates go up and hold for a year they will be coming down when the tax could be dropped.

However it is all about positioning.

I note that, as predicted, the treasurer has linked this tax to the removal of Stamp Duty for first home buyers. Despite the fact the tax is raising half what was expected what Gov will go to the Electorate with a return of FH SD to remove exit tax?

If the exit tax matters in the marginal electorates ( blue mountains, bathurst to name two) then it may be amended but I see it staying.

Peter 147