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]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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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.
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Richard Taylor
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