Property Call Options

Viewing 4 posts - 1 through 4 (of 4 total)

lippy2013
Member
@lippy2013
Join Date: 2012
Post Count: 2
December 26, 2012 - 1:33 am
Hi all
My accountant is having a hard time trying to find out the tax side of Call Option Agreements. I will be adding the margin scheme in the contract to be on the safe side. My understanding is that once the option is signed at a set price, any value added is mine to collect at sale of my position. Any D.A done is in the owners name. If anyone has had experience with OPTIONS I'd like to know. I have heard of Mark Rolton and others and have a good understanding of the basics but need some more details.
Thanks Dave
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
December 26, 2012 - 9:21 am
Granting an option is a cgt event.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
December 26, 2012 - 9:22 am
As is exercising an option.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
December 26, 2012 - 9:45 am
Unless of course if you are classified as a fully time developer and then it is merely added to your trading profit as normal taxable income.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender