Which Financial Year

Discussion in 'Accounting & Tax' started by skater, 30th Mar, 2022.

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  1. skater

    skater Well-Known Member

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    I've just been given an offer on a house that I've got for sale with a 90 day settlement on it, which means that it will settle next financial year. The offer is a decent one, and I'm thinking about it, but please confirm that for CGT calculations, the sale date is contract date.
     
    skater, 30th Mar, 2022
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  2. TAJ

    TAJ Well-Known Member

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    Contract date.
     
    TAJ, 30th Mar, 2022
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  3. skater

    skater Well-Known Member

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    I thought so, but always good to get confirmation. Contract date is the best for my situation anyway. :)
     
    skater, 30th Mar, 2022
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  4. Terry_w

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

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    It will generally be the date of exchange, but not always.
     
    Terry_w, 30th Mar, 2022
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  5. Sackie

    Sackie Well-Known Member

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    Congrats on your offer and sale I presume! :cool:
     
    Sackie, 30th Mar, 2022
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  6. skater

    skater Well-Known Member

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    Thankyou.
     
    skater, 30th Mar, 2022
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    If its in writing and arms length parties then the settlement date can be ignored. Contract basis (date) applies to the CGT event.
    This always raises a quandry. Do you include and consider settlement costs in the CGT calc in the 2022 year if they are paid after 30 June ?. Yes treat them as if they are paid as part of the contract agreement prior to 30 June.
     
    Paul@PAS, 30th Mar, 2022
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  8. Mike A

    Mike A Well-Known Member

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    what can also cause some confusion is that settlement dates are important when it comes down to the 'ownership period'
     
    Mike A, 31st Mar, 2022
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