All Topics / Legal & Accounting / What do I pay stamp duty on?

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  • Profile photo of David AndersonDavid Anderson
    Member
    @david-anderson
    Join Date: 2009
    Post Count: 17

    I’m looking at a property to purchase but I will be buying it via an option if I go ahead with it.

    5K for the option to purchase this property for x amount with in x amount time period. For arguments sake the purchase price is $300K and the option period is 6 months.

    Do I pay stamp duty on the 5K option or on the total purchase price?

    (Scenario is based in NSW).

    From what I have read and understand it is only on the option price but I’m not sure.

    Cheers.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    both i would say.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    Hi

    As Terry says, i.e. you'll need to pay stamp duty on the Option Fee of $5K once the option is established and then pay stamp duty on $300K (strike price) within 90 days of an exchange of contracts, if the option is exercised.

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
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    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    These are 2 separate contracts. SD is payable on both but not at the same time.

    Ie pay SD on the option contract when you enter into the contract.

    If you sell the option to someone else, they pay the sd on exercising the option (balance of the value when exercised).

Viewing 4 posts - 1 through 4 (of 4 total)

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