I have been given two conflicting pieces of advice on when a 'CGT event' is triggered upon purchase of a property in reference to the 50% CGT discount for holding a property for 12 months.
Does the 12 months commence for the acquisition:
a) Upon you signing the contract to purchase or;
b) Upon settlement and taking possession of the property?
The accountant who gave me the advice that the 12 months does not commence until the settlement date was adamant this was correct whereas the 'Property Tax Specialist' who gave the alternate advice ie it commences upon signing of the contract was also adamant.
I have also been told that the 12 months ceases upon you signing the contract of sale to sell the property and not the settlement date is this correct?
Example:
Purchase a unit 'off the plan' and sign contract in January 2014. Settlement takes place in November, 2016. Am I eligible for the 50% CGT discount if I sell the unit upon settlement?
Does the 12 months commence for the acquisition:
a) Upon you signing the contract to purchase or;
b) Upon settlement and taking possession of the property?
The accountant who gave me the advice that the 12 months does not commence until the settlement date was adamant this was correct whereas the 'Property Tax Specialist' who gave the alternate advice ie it commences upon signing of the contract was also adamant.
I have also been told that the 12 months ceases upon you signing the contract of sale to sell the property and not the settlement date is this correct?
Example:
Purchase a unit 'off the plan' and sign contract in January 2014. Settlement takes place in November, 2016. Am I eligible for the 50% CGT discount if I sell the unit upon settlement?