Am I eligible for the capital gain tax discount of 50% or not for the following scenario?
Apr 2021 - Signed the contract with developer to buy the land
June 2023 - Land titled
Jan 2025 - Construction finished and handover to us
Feb 2025 - Sold and signed the contract.
Property is on husband and wife's names.
Land cost - 250,000
Build cost - 300,000 (includes bank interests, builders payments)
Cost to us - 550,000
Sold price - 650,000
Selling expenses - 20,000
Profit - 80,000
Simple Question - Are we eligible for the Capital Gain Tax Discount of 50% on the profit of $80,000
I asked my tax agent who's been practicing for over 20 years and he said he doesn't know and he thinks that 12 months for the CGT discount will start from the handover date which is Jan 2025. He needs days to read the books to come back to me to answer my question. Hence, seeking help from community.
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