When do I pay my C.G.T. on sale of IP?

Hi Dale,

Am sellin an Ip - will be on market next week, will have had it for 12 months and a week by then - if sold in the next month or so when do i have to pay "my bit" to the bean counters? will it be due after the next financial year (2003)?

Many Thanks
Denise :confused:
 
Originally posted by Denise
Hi Dale,

Am sellin an Ip - will be on market next week, will have had it for 12 months and a week by then - if sold in the next month or so when do i have to pay "my bit" to the bean counters? will it be due after the next financial year (2003)?

Many Thanks
Denise :confused:

HI Denise

The sale takes place in the 2003 financial year and so you will not actually give the money to the tax office until March 2004.

As a rule of thumb, if you take the difference between the sale price (after costs) and the purchase price plus costs, you will have the notional gain. One half of that is exempt from tax and the other half will be added to your taxable income.

If you then place 1/2 of that taxable gain and place it is a term deposit for 18 months, you will have the money available when you need to hand it over.

I also understand that placing it in an offset account to reduce other debts might work for you as well.

Have fun and good luck with the sale

Dale
 
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