We purchased our block of land in december 2010. Signed building contract 31/3/2011. Final building payment made 20/2/2012. Our question is "from what date do we base ownership of the property for capital gains tax"? ie when shall we have held the asset for 12 months to be eligible for the CGT discount.
Hi Sharon,
I have done a bit of research on the ATO's website and believe that the building attaches to the land for CGT purposes, which means that the date you entered into the land contract is the deemed acquisition date for both the land and the property. In short I beleive you would be eligible for the 12 month CGT discount, subject to holding the land in your own hand.
I have located a private binding ruling which I can email to you if you like.
Cheers
Thanks very much for that. Makes sense when you think about it.