Hi All,
Im buying some vacant land with a partner – not a relation.
It will be in joint names.
We will build 4 units.
Once finished we will strata title the 4 dwellings.
My question is when we strata-title and create the 4 new titles can 2 just be in my name and 2 just be in partners name.Without any futher stamp duty or CG issues.
Many Thanks
GrantGrant
There are ways around the CGT issues but not the SD i’m afraid.
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There is a possible way to do it without CGT and stamp duty.
Buy the original property in a discretionary trust.
Once the project is finished you can split the trust into two (or 4). ie a new trust is cloned. Each trust needs to be identicle with the same appointors.
Each trust will hold one (or 2) property.
Each party will then control each trust separately. The appointors can usually be changed after the splitting without resettlement issues.
You will need expert legal advice to get this right as you could be hit with both CGT and SD if you do not do it properly.
Terryw
Discover Home Loans
Parramatta
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For some reading material on this, see:
Lawcentral.com.au newsletters
http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR20064/NAT/ATO‘
http://www.taxlawyers.com.au/Publications/New/TR2005_D15.pdf
Terryw
Discover Home Loans
Parramatta
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Thanks for that.
So assuming trust splitting not used how much stamp duty would we be up for?
Is it based on end valuation of units – but we each own 50% share originally so is stamp duty 50%???Thanks
GrantI don’t know if there are any exemptions for ‘developers’. I suspect it may be transferring 50% ownership = 50% stamp duty. ie stamp duty on the transfer amount (actually this may not = 50% of the stamp duty on the total).
Terryw
Discover Home Loans
Parramatta
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Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
maybe also check out http://www.chrisbatten.com.au
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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