Hi, All
Not sure if this is the right place for the question
My friend intend to sell his property to his brother privately, but he want to lower the price to a level so that his brother could avoid paying stamp duty, this may be well under the market price, will this casuing any trouble for them in the future?
Not sure if his brother is going to pay back the difference to him later on via cash.
Cheers
Hi,
Stamp duty is payable on value not sale price. If it were just sale price every man and his dog would be selling for less than market value with a cash deal on the side. This is deemed to be tax avoidance and is illegal. Not sure how each state picks up these favourable sales in their data but if yoir friend get caught not only will they have to pay back the stamp duty but may face more serious charges such as fraud etc.
I am sure people do this a bit but if your friend and his brother intend to really take the piss with the sale price at well below market price it may get picked up by the relevant state revenue office. Especially since there would be some tell tale signs such as no an real estate agent involved, same solicitor and same last names?
Not worth it..
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeThanks, Marty
I will make sure they know about this, as long as they don't over do it…
Cheersmucyx2007 wrote:Thanks, Marty
I will make sure they know about this, as long as they don't over do it…
CheersYour post has now been publicly recorded as you being an accessory to the crime now, if you advise them to do it, but make it less obvious.
If three cars go through a stop sign, the first at 2km/hr, the second at 20km/hr and the third at 200km/h – which one isnt in the wrong?
pinkboy
Also, If it is an investment property purchase, when his brother gets around to selling it he will have a larger Capital Gain liability because the cost base was artificially reduced.
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