When is CGT payable on sale of an IP?

Discussion in 'Legal Issues' started by teg499, 28th May, 2016.

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  1. teg499

    teg499 Well-Known Member

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    I recently sold an IP (settlement was in May). When is the CGT payable?

    Do you usually get a few months to pay the CGT?
     
    teg499, 28th May, 2016
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 28th May, 2016
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    When you lodge your annual tax return with the ATO
     
    Scott No Mates, 28th May, 2016
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  4. teg499

    teg499 Well-Known Member

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    Great. Thanks guys.
     
    teg499, 28th May, 2016
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    @teg499 - don't prepare your return yourself - use your accountant to prepare & lodge. They will sit on it for as long as possible for you to delay the pain.
     
    Scott No Mates, 28th May, 2016
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  6. wylie

    wylie Moderator Staff Member

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    This is good advice. I've just paid my tax (yesterday) for a capital gain from a sale in April 2015.

    And if you are very quick, and depending on how much the gain is, you could look at prepaying interest, rates, utilities infrastructure in June to bring those deductions into this financial year to offset the gain. If you want to prepay interest, you need to act quickly as it needs to be organised, locked in, documented.
     
    wylie, 28th May, 2016
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 28th May, 2016
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  8. Marg4000

    Marg4000 Well-Known Member

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    Time the sale carefully and you can postpone CGT payment for nearly two years.

    Example - we signed a contract to sell on 3 July (say) 2013. Tax return lodged by accountant May 2015. Tax paid on due date in June 2015. CGT sat in our offset and saved thousands in interest.
    Marg
     
    Marg4000, 28th May, 2016
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