Hi Community,
My property was rented out for nine years upon purchase before I moved in as my main residence (home). I signed a call option deed granting an entity an option to purchase my property with extension rights and received an initial call option fee in 2019-20 and option extension fees in subsequent years.
I lodged my income tax returns treating the initial call option fee in 2019-20 and the extension fees in subsequent years as capital gains from CGT event D2 according to guidelines in ATO website.
The entity will likely exercise the call option to purchase my property with sale contract date before 30 Jun 2023. This will lead to CGT event status changes from D2 to A1. I need to make amendments to the tax returns in the previous three years (2019-20 to 2021-22) to take out the D2 capital gains on option monies received before I can account for A1 capital gains on sale of property (including option monies) in the 2022-23 income tax return.
Q1. As an individual, how can I amend my 2019-20 income tax return which has already outside the 2-year time limit for amendment or objection?
By Paper Objection Form-for taxpayers NAT 13471? By Paper Amendment Form NAT 2843?
Q2. Do I need to wait for ATO's amended 2019-20 income tax assessment sent to me before I can lodge online amendment through myGov for the subsequent years 2020-21 and 2021-22 while they are still within the amendment time limit?
Q3. If the call option is exercised with sale contract date in Jun 2023: can I include those associated legal fees etc paid till settlement date (say in Sep 2023) as additional items to the cost base for calculating the capital gain on sale of property when lodging the 2022-23 income tax return in Oct 2023?
Q4. If call option extension fee was received in Mar 2023 and call option is exercised with property sale contract date in July 2023: Can I cut short to treat this option extension fee as part of the capital proceeds for the sale of my property in the 2023-24 tax return next year? Can I skip the steps to first include such extension fee as D2 capital gain in the 2022-23 tax return and then to exclude it by subsequent amendment since option already exercised in July 2023 before I lodge tax return in Oct 2023?
Q5. How can I apply for deferring the lodgement of the 2022-23 tax return if I can't get amendments to my previous years' tax returns done and approved by ATO before end of Oct 2023?
I look forward to receiving advice from the Community. Thank you.
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