A question for established lease optioners.
How have you structured your option fees and tax?
Do you claim the option fees are income for tax purposes? (They may not exercise the option)
or
The option fee is assessed as capital gains. If they exercise the option your accountant has to go back and alter your previous return to remove the capital gain and it then gets applied to the current years gain.Has anyone applied for a private ruling?
Thanks
Tracey[biggrin]Tracey
I think I claimed the intial option fee as a capital gain, and then when excerised, the sale price less the purchase price is the gain. The sale price will already have taken into account the reduction due to the option fee coming off, so it wouldn’t be included twice. I don’t see why tax returns would need amending??
Terryw
Discover Home Loans
North Sydney
[email protected]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
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