All Topics / Creative Investing / Stamp Duty & CGT on Wrap contracts

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  • Profile photo of andkozandkoz
    Participant
    @andkoz
    Join Date: 2006
    Post Count: 10

    Hi,

    I am wondering whether anybody knows when a purchaser in a wrap contract (wrapee) pays a stamp duty? Is the stamp duty payable when the contract is signed or is it payable when the property title is transfered to the wrapee?

    After reading Steve’s books I was under impression that awrapee needs money only for a deposit and his/her legal costs. This is not so according to a lawyer I have engaged for a wrap contract. I am confused. I would appriciate an answer from somebody with a working knowledge of the wrap contracts.

    The second issue is – when a wrapper is suppose to pay capital gain tax – at the beginneing or at the and of the contract? I had a professional advise that this depends whether the wrap sale is part of a business or is one off. However, there is no clear criteria for the classification.
    [king]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    stamp duty depends on which state the property is in. In NSW, I beleive it is payable within 3 months of exchange. in Vic I beleive it is on settlement.

    Terryw
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    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    In Qld it is 30 days after you go unconditional so in a wrap that is pretty early in the piece.

    And I think i answered the other question off line for you Andrew.

    Cheers

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Viewing 3 posts - 1 through 3 (of 3 total)

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