I have a question[
]I understand that if I sell one of my IP’s to a newly set up company/trust structure I will have to pay stamp duty at the correct market value of the IP.
However if I sell the IP to my company for the same price I paid for it then I would not have realised a capital gain, so would that mean I would pay no capital gains tax on that sale?????
Or if I went one step further if I sold at a loss would I have a nice deduction on my hands??? (not that I would do that!)
Mick
Can he not transfer it at whatever value he likes, but when it comes to CGT and Stamp Duty it will be assessed on ‘fair market value’, especially as the transaction is not arms’ length?
Cheers
MelI think it’s deemed to have been sold to the company at market value, for CGT purposes.
Cheers
Elysium-MDIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
So who deems “market value”? Is it a bank valuation for first mortgage purposes, sales appraisal?? If bank valuation, it will obviously be a lower figure than a sales appraisal.
James
I think for whatever price you ‘sell’ the property for you should be able substantiate the price if audited. eg keep a file of comparative sales, get a valuation etc.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Makes no difference if you sell to your own company or any other company/trust. For tax purpose, you & your company are two seperate entity.
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