CGT, FY, contract date, settlement date

Hi tax experts

say an investor signed a sale contract ( to sell his investment property) on 10 May, and the property settles on 5 July.

which date is used for the investor's tax return? 10 May or 5 July.

( or, should the investor use 10 May to do tax this FY, or use 5 July for next FY?)

 

The contract date is used for CGT event A1 when a disposal occurs

Types of CGT events

 

Generally contract date.

But not always

 

Thanks Paul and Terry

 

It is if its a disposal and there is a sales contract and its a CGT event.

If its a developer sale thats a whole different issue. If its a business income sale then its the settlement date. If its a isolated profit making sale its the contract date.

 

What if it is a oral contract?

 

Hard to sign a oral contract as mentioned in the OP.

 

Am I interpreting "contract date" correctly - so as per the OP statement there is the date the sale contract is signed, and there is the settlement date, and you (and the link) are referring to the date the sale contract is signed? So before you actually receive the income?

Cheers,
Inertia

 

The date is generally when the contract is entered into. What if A signs on 30 June and B signs on 1 July? It is not a contract until the offer is accepted so 1 July in this case.

What if the contract is contingent on something happening? e.g. A enters into contract to purchase on 20 June subject to his current main residence being sold (contracting) which happens on 1 July. The date for this contract would probably be 1 July.

 

I just orally signed my name.

But, I was talking in general. In this case it would be the date of settlement that is the date of the CGT event.

 

This is why it costs so much to see a lawyer. All they do is mention things that didnt happen.

 

always enjoyable to see the debates between @Terry_w and @Paul@PFI,

 

Terrys good.