Forums / Getting Technical / Legal & Accounting / purchasing the other half of tenants in common

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  • Profile photo of maccas1maccas1
    Member
    @maccas1
    Join Date: 2008
    Post Count: 2

    Hi i have a property that i built with a mate we have both gone our separarte ways and i was looking at buying him out as the property is currently rented and doing quite well.
    the loan is in both names and there was never a tenants in common drawn up

    My question is do i have to pay stamps on his half of the property?
    and what other fees would there be if i went thriough with this?

    Regards Macca

    Profile photo of DAMPropertyDAMProperty
    Participant
    @damproperty
    Join Date: 2011
    Post Count: 44

    How have you been doing your record keeping for your property?  What was the split per person 50% / 50%?  What did the accountant use to verify this?

    DAMProperty | DAM Accounting Services
    https://www.damaccountingservices.com.au

    Profile photo of maccas1maccas1
    Member
    @maccas1
    Join Date: 2008
    Post Count: 2

    house was originally PPOR only became rented in the last 10months loan is split 50% each.
    Accountant has not asked for anything regarding verification on that.
    So do i have to pay stamps or anything?

    Regards Macca

    Profile photo of Rob G.Rob G.
    Participant
    @rob-g.
    Join Date: 2010
    Post Count: 70

    Most likely stamp duty on acquiring your mate's share, the amount depending on your state.

    If joint tenants, both of you have a CGT event when the joint tenancy is severed.

    You may get some main residence exemption if you occupied it for some of the time.

    Better get some detailed advice from an accountant because joint ownership is complex for tax.

    Cheers,

    Rob

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Unless you marry your mate, or claim defacto status, I think you would be up for stamp duty.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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