From: David H
I'm looking at the concept of wraps but I am concerned that I will have to pay CGT once I onsell to the purchaser at the margin above my purchase cost.
I realise I will have to pay income tax on the interest margin I charge, but how is CGT treated on the difference in sale and purchase prices?
It's fairly clear that I don't want to pay the ATO a sum upfront when I will be receiving the cashflow on a periodic basis over the time of the loan. Is there something in the wrap contract with the end purchaser that prevents this?
David
I'm looking at the concept of wraps but I am concerned that I will have to pay CGT once I onsell to the purchaser at the margin above my purchase cost.
I realise I will have to pay income tax on the interest margin I charge, but how is CGT treated on the difference in sale and purchase prices?
It's fairly clear that I don't want to pay the ATO a sum upfront when I will be receiving the cashflow on a periodic basis over the time of the loan. Is there something in the wrap contract with the end purchaser that prevents this?
David
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