Is the date of sale on a property the actual day of the vendor signing the contract?? Or when please? IS there a reason it may be another day? Thanks.
Legally I believe it is the date that the contract is entered into. ie with property the date of exchange. If there are conditions, then the contract may not be binding until these are met, but the date of the contract will still be the date of sale. I also believe the ATO also follows the date of the contract to be the date of sale/purchase for tax purposes.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry, thanks for that. So, does that mean that if the purchaser dates it when they sign it, then it goes to vendor, and they sign it, say a week later, then the date of sale will be the date vendor has signed it??
I was told it was the day of handover.
EG: I signed the contract on some land in Sept. last year, land settled in March, the house was completed 2 weeks ago, and "apparently" that was the day that the ATO works from.
BB
Assuming that the purchaser has signed the contract first (which is not always the case) the date of the contract is the date the vendor signs the contract. This is the date that may have taxation implications etc.
Hi, I thought date of contract was the day the offer became a contract (ie. when the vendor & purchaser agree in writing on terms & price of a property)
& date of sale is the settlement date when the property is handed to the purchaser after fulfilling all necessary terms & conditions (finance, building, pest etc…) as outlined on the contract…. I could be wrong though… is there a real estate guru out there anywhere guys???Terry as usual is of course correct.
Legally it is the date the contract was entered into.
Hence the reason to be extremely careful in Tax planning when you are buy and selling a property over a financial year end to ensure that you have atcually owned the property for 365 + days. have seen a couple of clients thought the magic date was the unconditiona or settlement date (which was extended) and lost the CGT concession.
Richard Taylor | Australia's leading private lender
Thanks for asking the question Misty1 since I thought it was the settlement date. The contract for our house was signed in February when we were over from the UK, but the settlement date was in June. So I assumed the date of sale was in June.
So much to learn……
Karen
Thanks for answers! I hope this helps others.
what about if i buy a place near the end of the fisc year, it brings a loss, can I claim that entire loss off my taxable income for that entire year?
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