Forum Replies Created
-
Replies
-
The point I was trying to make, albeit clumsily, is that I don’t think it is that simple. Now, after venturing down the rabbit hole researching this, all the way back to its underpinnings in early English common law and legal right to possession versus legal right of ownership etc, I think it’s well above my pay grade. Never mind …
What is the acquisition date? Per the ATO re CGT and NSW Gov re Transfer Duty it’s the date of signing/exchange. Settlement and registration of title transfer etc are completing the terms of the contract which was entered into on or about the exchange date.
Or, post-settlement, on which date did the committee member cease being an owner? Per the above, it’s the exchange or acquisition date.
If correct, it would mean that the committee member was ineligible, if self-nominated, to be on the committee after the exchange date.
Re ‘maybe for tax purposes’. If the ATO’s timeline for the calculation of Capital Gains Tax was wrong in property law it would have been litigated out of existence.
Settlement, who pays for damages or strata levies etc are terms of the contract for sale.
To approach it from another angle: what is the relevant date, exchange or settlement, re payment of transfer/stamp duty?
From NSW Govt Revenue: “You must pay transfer duty within three months of signing a contract for sale or transfer, except in the case of off-the-plan purchases.”
Ref: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty
Having said all that: who owns the title between signing the contract/exchange and settlement? If on the former date, an investor vendor is no longer liable for CGT whereas an investor purchaser is, and from that date the purchaser is liable for transfer duty, surely it’s the purchaser.
So, methinks, the answer to Larry’s question is no (with Jimmy’s caveat: if self-nominated)
I would have thought that the committee member ceases to be an owner on the date when the contract for sale is signed by both parties which is usually on or about the date of exchange.
This from the ATO may be relevant: Timing of a real estate CGT event
When you sell or otherwise dispose of real estate, the time of the event (when you make a capital gain or loss) is usually:
- when you enter into the contract (generally the date on the contract), not when you settle – the fact that a contract is subject to a condition, such as finance approval, generally doesn’t affect this date “