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Wayne2025(Newbie)Newbie
23 Mar 2025

Can someone please explain the following details from the ATO on CGT.

Why would you include a capital gain in an income year that the gain didn't even occur, or happen yet?

'In June 2023, they entered into a contract to sell the property, and in November 2023 it was sold for $900,000. Their costs of sale, including legal fees, were $10,000.

Karl and Louisa owned the property jointly. This means that they each have a capital gain of $36,000 which they will need to put in their tax return for the year in which the contract to sell the property was made, being the 2023–24 year.'

Regards, Wayne.


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RachelATO(Community Moderator)Community Moderator
3 Apr 2025

HI @Wayne2025,


Selling the property is a CGT event and happens when the contract of sale is entered into (not when settlement occurs).


In the example provided, the contract of sale was signed in the 24FY which is why the CGT is reported in that income year.

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When and how to calculate CGT for a rental property. | ATO Community