I am a bit lost as to when my date of purchase for a property was/is for captial gains tax purposes. Hope someone can assist based on following:
1) Puchased unit off plans in 1st Dec 03. Using a putand call option ‘to purchase’
2) The developer exercised their put option (or was it call option – whichever) Aug 04
3) I subsequently SOLD apartment with contract signed Oct 04
4) Unit will be completed in Aug 05 at which time their will be simulaneous settlemetn from developer – to me – and then to those that purchased off me.So what is that date that I use for any capital gains purposes?
many thanks for any help
MarkI beleive it is the date you signed the contract of sale. I am not sure how these work exactly, but you would have signed an option contract initially. At some stage, you would also be requried to sign a contract of sale (this may have been at the same time).
But if you are assigning the option, it would probably be the date you signed the option agreement and the date of the assignment.
I am not a solicitor, or accountant so am probably wrong.
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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