Hi,
I purchased a block of land in the ACT approx 2 years ago, however i only put down 10% deposit and signed the contract for sale/crown lease. I then had to pay stamp duty within 90 days. The land wasn't ready to build on until the 26th june 2009 on which the remaining 90% was paid. I sold the house on the 6th june 2010 which is 2 years after i signed the contract for sale but less then 1 year from when i was able to build on it.
Am i eligible to get the discounted capital gains tax or do i have to pay the full amount?
http://www.ato.gov.au/corporate/content.asp?doc=/content/00208572.htm&page=2&H2
"Purchases under contract, such as land, houses, business, shares, one-tonne utilities and boats, don't always result in the date of contract and the date of possession being the same . In these instances, your acquisition date is the time you enter into the contract (normally the date on the contract) and not the date you take possession or the date of settlement."
I'd give the ATO a call and discuss your precise situation to be sure. Was there a separate contract for the construction? Or was the entire purchase handled with the one contract?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I think you would qualify because you had entered into the contract more than 12 months prior to selling.
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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
