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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44178
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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When is capital gains tax triggered , and payable

Customer Question

Hello ,
When is capital gains tax triggered , and payable , on the sale of an investment property in NSW ?
For example we exchange contracts and I receive a deposit prior to June 30 , 2015 enabling us to contribute to our SMSF this financial year , but settlement is not til next financial year when we can make another contribution to our SMSF ?
Regards
Rod. W
Submitted: 2 years ago.
Category: Australia Law
Expert:  Leon replied 2 years ago.
Good Evening
My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question.
It is triggered on the day that the contract is signed.
You will have to pay the CGT in this financial year not the year you receive the money.
Here is the information from the ATO
https://www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Timing-of-a-real-estate-CGT-event/
I am sorry it is not good news. I hope this is of assistance and if there is nothing further thank you for using my services.
If I have missed anything, or you have any further questions please let me know
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
Regards
Leon
Expert:  Leon replied 2 years ago.
Good Evening
I'm just following up our discussion earlier this week and seeing whether there is anything else I can assist you with.
If I have missed anything, or you have any further questions please let me know.
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
I look forward to hearing from you.
Regards
Leon