Hi All
Basically the scenario is this: Parents have an investment property they purchased over a year ago that they are happy to sell to myself and my partner for the purchase price. Basically, we just need to cover the current mortgage on the house and any additional fees/taxes etc
Can we reduce/eliminate any fees or taxes by “gifting” the property or is there any other avenue we can use to hand the property over with minimal costs.
Please advise
Thanks!
No you can’t. Both stamp duty and CGT will be assessed at market value. There will also be tax and asset protection issues with receiving a gift so best to structure this as a sale at full market value, properly contracted.
consider also parents just keeping as is to save costs. It could be gifted to you eventually via the will with no stamp duty or CGT triggers.
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
Hello all,
Quick question for any experienced and knowledgable property people relevant to the thread.
I heard recently that when a investment/property is gifted by a parent to their child when they marry it is not subject to Stamp duty, pending certain conditions like the period of time before or after the wedding.
It sounds ludricous in todays day and age, but can anyone shed any light on this or even heard of it?
Any resposnes appreciated
Hello all,
Quick question for any experienced and knowledgable property people relevant to the thread.
I heard recently that when a investment/property is gifted by a parent to their child when they marry it is not subject to Stamp duty, pending certain conditions like the period of time before or after the wedding.
It sounds ludricous in todays day and age, but can anyone shed any light on this or even heard of it?
Any resposnes appreciated
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As you suspect – Just a bizarre story with no basis of fact – unless the parents are gifting upon death.
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
As Terry has touched on, completely untrue. The government always wants it’s piece of the pie.
One thing of worthwhile note for family transfers however is that lenders in many cases will accept below market value transfers as equity meaning the person receiving the property can finance the property with 0 deposit so long as the ratios stack up.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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