All Topics / General Property / Two questions

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  • Profile photo of InnaInna
    Member
    @inna
    Join Date: 2004
    Post Count: 17
    March 1, 2004 - 5:15 am

    Hi !

    I have two questions, if anyone knows the answers to these :)

    1. Do you have to sell a property at market value ?
    If you sold it for $100,000 under value – would it matter ? Would it affect stamp duty for the buyer ?

    2. If a parent wants to transfer their property into their (adult) childs name, is there still the same stamp duty/costs to pay as if the child had bought the house ?

    thanks !
    Inna

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    March 1, 2004 - 5:21 am

    You can sell a property for what you like.

    I believe the stamp duty is supposed to be assessed at market value or sale price whichever is the higher.

    This is also the case in a family transfer as you describe.

    There may be differences in each state so I would recommend that you contact the Office of State revenue or your state’s equivalent.

    Cheers,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of bigbenbigben
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    @bigben
    Join Date: 2003
    Post Count: 62
    March 1, 2004 - 6:43 am

    Hi Inna,
    By the way if you want to sell a property for $100,000 under market value i will be more than happy to get rid of it for you ……[:X]

    Profile photo of JetDollarsJetDollars
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    @jetdollars
    Join Date: 2003
    Post Count: 2,435
    March 1, 2004 - 6:54 am
    Originally posted by bigben:

    Hi Inna,
    By the way if you want to sell a property for $100,000 under market value i will be more than happy to get rid of it for you ……[:X]

    I guess the intention is parent off load to children.

    Warm Regards

    ChanDollars
    [Keep going, you’re on your way to Frolic Freedom!]

    Profile photo of bensonbenson
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    @benson
    Join Date: 2003
    Post Count: 101
    March 1, 2004 - 6:59 am

    The revenue office asks you to advise if the sale is between related parties, if so they will value the property and assess duty based on that value not the sale price.

    Benson.

    Profile photo of yackyack
    Member
    @yack
    Join Date: 2003
    Post Count: 1,206
    March 1, 2004 - 7:09 am

    I think there maybe tax implications too. Tax aviodance and selling to related parties. When calculating capital gains, if selling to related parties you need to calc at market value…..something like that….

    Seek tax advice before you proceed.

    Profile photo of redwingredwing
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    @redwing
    Join Date: 2003
    Post Count: 2,733
    March 1, 2004 - 7:07 pm

    Agree..seek tax advice

    i’d believe the Sale would have to be “At arms Length” if selling to family, especially at a discounted rate, where the only benefit is tax avoidance..

    When you’re looking at $100k make sure you do it correctly..

    REDWING

    “Money is a currency, like electricity and it requires momentum to make it Effective”

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