What is the date of aquisition?

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Alotofquestions

(Initiate)Initiate

11 July 2024

Hi,

Could you please advise what are the acquisition dates for CGT purposes for the following situation:

Contract of Sale of land signed on 16/10/2020

Land settlement on 23/06/2023

Building contract (to build a house on this land) signed on 06/07/2023

Construction completed (Occupancy Permit obtained) on 19/12/2023

Contract of sale of the finished house signed on 22/01/2024

Settlement on 01/03/2024

Is the whole asset treated as acquired on 16/10/2020 and can the CGT discount be used?

thank you

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Taxduck

(Taxicorn)Taxicorn

11 July 2024

I would suggest you seek professional tax advice on this. The construction and sale of new residential premises is not a CGT event. It is normal income and any profit is taxed at normal rates. GST also applies on the sale. Check this

Building and construction – residential premises | Australian Taxation Office (ato.gov.au)

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Taxduck

(Taxicorn)Taxicorn

11 July 2024

Building and construction – residential premises | Australian Taxation Office (ato.gov.au)

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ZebN

(Champion)Champion

11 July 2024

Yes. It could be an isolated commercial transaction, per Taxation Ruling TR 92/3 Income tax: whether profits on isolated transactions.

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