stamp duty

Viewing 8 posts - 1 through 8 (of 8 total)

Johnny1974
Member
@johnny1974
Join Date: 2010
Post Count: 20
March 14, 2011 - 2:12 pm
Hi all
I own 3 IP’s equally with my partner.
Long story short, I want to transfer (sell) my share of each property into her name. So if I sell her my 50% share of a property for $1 how much stamp duty would she pay? ie stamp duty on a $1 or on the current market valuation?
We are not married, so how would the ATO look at such transactions? After all, if I want to sell my share in a property for a certain price it should be my decision? Right?
luke86
Participant
@luke86
Join Date: 2010
Post Count: 470
March 14, 2011 - 9:27 pm
You will pay stamp duty on the sale price or market value, whichever is higher. This rule is in place to stop people transferring property for $1 for tax evasion reasons.
To cut a long story short, if you sell her your share for $1, then you will pay stamp duty on the market value.
Cheers,
Luke
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
March 15, 2011 - 7:38 am
Sorry- you will still have the pay the market value of the stamp duty, which ever is higher.
Which state are you in?? i know in VIC and some another state; no stamp duty is payable if you “add/ remove ” your wife to the property-
Regards
Michael
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4jojo
Participant
@4jojo
Join Date: 2009
Post Count: 18
March 16, 2011 - 4:25 am
HI,
I've been trying to find this out –
What if you have an IP in Vic in own names can you transfer property title over to family trust fund without paying stamp duty?
Thanks.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 16, 2011 - 4:46 am
4jojo wrote:
HI,
I've been trying to find this out –
What if you have an IP in Vic in own names can you transfer property title over to family trust fund without paying stamp duty?
Thanks.
I doubt it.
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Johnny1974
Member
@johnny1974
Join Date: 2010
Post Count: 20
March 16, 2011 - 9:01 am
If you did the "sale" / transfer for a nominal amount, say 20k (when really a half share is worth 150k) how would the ato find out? I dont get it, what if I did really sell a property for a cheap price, who is the ATO to tell me what stamp duty to pay. <moderator: delete language> there should be no stamp duty to encourage us property investors to transactions / deals. That would get the real estate game happening again.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 16, 2011 - 9:05 am
Johnny1974 wrote:
If you did the "sale" / transfer for a nominal amount, say 20k (when really a half share is worth 150k) how would the ato find out? I dont get it, what if I did really sell a property for a cheap price, who is the ATO to tell me what stamp duty to pay. <moderator: delete language> there should be no stamp duty to encourage us property investors to transactions / deals. That would get the real estate game happening again.
ATO wouldn't be concerned with stamp duty as it is a state levy. If it is an obvious related party transfer then the OSR will probably want to see a valuation . Otherwise they may not know, but could pick it up with data matching – going on the land values.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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folino54
Participant
@folino54
Join Date: 2008
Post Count: 7
March 16, 2011 - 9:13 am
In Victoria you will only need to pay 50% of total stamp duty payable. Normally a govt. approved valuer is appointed if property is not sold to a third party.
This was my situation a few years ago. If the A.T.O doesn't get you at the front door they will get you out the back door.