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Selling a Commercial Farm

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Hi I'm selling a commercial farm. If I sell to a buyer and they would like to pay for it over a 4 year term in 4 payments.

When would the Capital Gain occur?

Would it be calculated when the property is fully transfered or is it based on the contract date?

If it is calculated from the contact date and settles in 2023 does the capital gain add to my income in 2023?

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Hi @jolsen,

 

Welcome to our Community and thanks for your question.

 

Capital Gain Tax (CGT) is reported on your tax return as income in the relevant year that you entered into a contract, not when you settle. For example if you sign a contract to sell your commercial farm in September 2019 you would need to report the capital gain or loss on your 2019-20 tax return.

 

I hope this helps you, SueO

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Best answer

ATO Certified

Community Support

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Hi @jolsen,

 

Welcome to our Community and thanks for your question.

 

Capital Gain Tax (CGT) is reported on your tax return as income in the relevant year that you entered into a contract, not when you settle. For example if you sign a contract to sell your commercial farm in September 2019 you would need to report the capital gain or loss on your 2019-20 tax return.

 

I hope this helps you, SueO