On-selling Call Option will attract Stamp Duty???

Viewing 5 posts - 1 through 5 (of 5 total)

fullout
Member
@fullout
Join Date: 2003
Post Count: 233
February 9, 2004 - 7:23 am
Have any of you on-sold a call option for a property, did you have to pay stamp duty?
I am in Victoria, and several solicitors have told me the ATO is looking at it as a ‘purchase’.
Whats the deal here?
In actuality, on-selling an option is onselling a ‘right to buy”, but not onselling the property itself. PLus, I do not sign the Section 32 at all.
Whats the ATO trying to pull?
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Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
February 9, 2004 - 12:16 pm
The ATO is looking to grab as much tax as possible.
But what is the office of State Revenue thinking? I beleive the OSR (or Vic equivalent) is the agency that collects stamp duty-which is a state tax and has nothing to do with the ATO. So is it the OSR taht your solicitors were referring to? If not, maybe they were talking about CGT? Or I may be wrong in my assumptions.
If you are to be charged stamp duty, what would the rate be classified on? ie the option price or the value of the property?
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
fullout
Member
@fullout
Join Date: 2003
Post Count: 233
February 9, 2004 - 12:46 pm
oh yeah its the State Revenue Office, not the ATO.
I wonder if they actyually mean double stamp duty or just the difference that i put into my pocket.
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Adofunk
Participant
@adofunk
Join Date: 2003
Post Count: 19
February 10, 2004 - 3:26 am
I’m curious about this too:
I talked to my conveyancer about it. She reccommended the use of an “And or Nominee” contract rather than an “Assignment of Contract”..
Apparently they can “back date” the letter of consent from whom ever you put on the contract, though I “didn’t hear this from her”.
As for an Option, I’m not sure.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
February 10, 2004 - 7:14 am
Adofunk. A conveyancer suggeting something illegal! I bet it happens a lot.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au