# CGT: Date Sold or Settlement Date?



## Shehan (26 June 2006)

Hi guys, just a quick question...

In terms of capital gains tax, is the date the ATO considers you sold the asset the actual date u clicked 'sell' and the transaction went through, or the date of settlement?..or somewhere in between?

With the EOFY just around the corner, i was just curious.

Thanks for any help!


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## RichKid (26 June 2006)

Shehan said:
			
		

> Hi guys, just a quick question...
> 
> In terms of capital gains tax, is the date the ATO considers you sold the asset the actual date u clicked 'sell' and the transaction went through, or the date of settlement?..or somewhere in between?
> 
> ...




Shehan,
I'm not sure if this is correct but I just use the buy/sell dates on the contract note provided by my broker (comsec). Best to check with the ATO directly, their site should have some examples, the ATO tax pack supplement will have some simple examples too but I'm not sure if it's that specific.


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## bullmarket (26 June 2006)

Hi shehan

my understanding is that it's the date bought/sold that counts and not the settlement date.

but if in doubt maybe give the ATO a call.

cheers

bullmarket


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## redandgreen (26 June 2006)

RichKid said:
			
		

> Shehan,
> I'm not sure if this is correct but I just use the buy/sell dates on the contract note provided by my broker (comsec). Best to check with the ATO directly, their site should have some examples, the ATO tax pack supplement will have some simple examples too but I'm not sure if it's that specific.



as I understand it, 
it is the date you sell that applies not the settlement date.
The same principle applies when an investment property is sold the "exchange" Vs  the "settlement"


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## Staybaker (26 June 2006)

The relevant date is the date of the _contract_. For property transactions, it's the date the contract (to purchase or sell) was signed. For stock transactions, it's the date of the buy/sell, which should be reflected on the _contract note_ from your broker.

Settlement is just an accounting transaction which occurs after the event, and its date has no relevance for tax purposes.

Cheers, Staybaker.


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