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 | | From: | gumshoe | | Subject: | Capital Gains on land/house? | | Date: | Mon, 24 Jan 2005 10:28:52 +1100 |
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I contracted to buy a block of land in October 04 and the land will be
available in April 05 then I intend to build a new home on it (which
will take 6 months to contruct) and then sell it.
I'd like to know if the 50% Capital Gains Tax if sold within 12 months
applies to the date of land contract? or on settlement of land?.
(no I can't live in it either)
--
gumshoe
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| | From: | Heretic | | Subject: | Re: Capital Gains on land/house? | | Date: | Mon, 24 Jan 2005 04:55:58 +1100 |
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| On Mon, 24 Jan 2005 10:28:52 +1100, gumshoe wrote:
> I contracted to buy a block of land in October 04 and the land will be
> available in April 05 then I intend to build a new home on it (which
> will take 6 months to contruct) and then sell it.
>
> I'd like to know if the 50% Capital Gains Tax if sold within 12 months
> applies to the date of land contract? or on settlement of land?.
>
> (no I can't live in it either)
Usually, it's the date the land contract is legally binding. That might
be the date of exchange of contracts, or if there is a condition precedent
to the contract becoming binding, the date that the condition precedent is
met.
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| | From: | gumshoe | | Subject: | Re: Capital Gains on land/house? | | Date: | Mon, 24 Jan 2005 17:27:13 +1100 |
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Usually, it's the date the land contract is legally binding. That
might
be the date of exchange of contracts, or if there is a condition
precedent
to the contract becoming binding, the date that the condition precedent
is
met.
There are no conditons in the land contract as its unconditional.
I'm hoping CGT is from the date of exchanging the contracts as by the
time I build it would have been at least 12 months, then I believe the
tax is half.
--
gumshoe
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| | From: | Heretic | | Subject: | Re: Capital Gains on land/house? | | Date: | Mon, 24 Jan 2005 06:08:42 +1100 |
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| On Mon, 24 Jan 2005 17:27:13 +1100, gumshoe wrote:
> Usually, it's the date the land contract is legally binding. That might
> be the date of exchange of contracts, or if there is a condition
> precedent to the contract becoming binding, the date that the condition
> precedent is met.
>
> There are no conditons in the land contract as its unconditional.
>
> I'm hoping CGT is from the date of exchanging the contracts as by the
> time I build it would have been at least 12 months, then I believe the
> tax is half.
The date of exchange of contracts is the date that you became the
equitable owner of the land. That's your start date.
If you haven't alreadt done so, check the ATO site, call the ATO, or get
hold of the CGT publication from the ATO to satisfy yourself about the CGT
discount, because only you know all your circumstances.
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| | From: | gumshoe | | Subject: | Re: Capital Gains on land/house? | | Date: | Mon, 24 Jan 2005 18:28:15 +1100 |
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Heretic Wrote:
> On Mon, 24 Jan 2005 17:27:13 +1100, gumshoe wrote:
>
>
> > Usually, it's the date the land contract is legally binding. That
> might
> > be the date of exchange of contracts, or if there is a condition
> > precedent to the contract becoming binding, the date that the
> condition
> > precedent is met.
> >
> > There are no conditons in the land contract as its unconditional.
> >
> > I'm hoping CGT is from the date of exchanging the contracts as by
> the
> > time I build it would have been at least 12 months, then I believe
> the
> > tax is half.
>
> The date of exchange of contracts is the date that you became the
> equitable owner of the land. That's your start date.
>
> If you haven't alreadt done so, check the ATO site, call the ATO, or
> get
> hold of the CGT publication from the ATO to satisfy yourself about the
> CGT
> discount, because only you know all your circumstances.
Thank you very much I will get futher advise.
--
gumshoe
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