I’m looking at a property to purchase but I will be buying it via an option if I go ahead with it.
5K for the option to purchase this property for x amount with in x amount time period. For arguments sake the purchase price is $300K and the option period is 6 months.
Do I pay stamp duty on the 5K option or on the total purchase price?
(Scenario is based in NSW).
From what I have read and understand it is only on the option price but I’m not sure.
Cheers.
both i would say.
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
Hi
As Terry says, i.e. you'll need to pay stamp duty on the Option Fee of $5K once the option is established and then pay stamp duty on $300K (strike price) within 90 days of an exchange of contracts, if the option is exercised.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
These are 2 separate contracts. SD is payable on both but not at the same time.
Ie pay SD on the option contract when you enter into the contract.
If you sell the option to someone else, they pay the sd on exercising the option (balance of the value when exercised).
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