Forum Replies Created
Thanks Terry, What if I get the first home owners grant – I should be exempt?
Hi –
so, if they transfer it at market value of $350K to me (I don' t pay them any money – although I am not sure what the difference is between me having paid them any money or not from a legal point of view) and the house is in NSW, do you know if there would there still be any stamp duty payable (or a website with those details?
Although I've spoken to my solicitor we are still not certain of the implications of tax/and eligibility of FHOG with this arrangement (I will knock down the house and rebuild a new one).
It's one huge stressful issue!!
Hi,
Actually I thought I would qualify for the first home owners grant which would mean i am exempt from paying stamp duty? But I am not 100% confident OSR gave me the right information when they said I would qualify so long as I had a contract to build the house. Nobody (not my accountant nor the construction company nor my solicitor nor OSR, nor my finance broker could answer with 100% certainty I would get the FHOG in this situation). I am so confused about the whole issue.
Basically they are "gifting" me the land because it will help me secure a bank loan I might otherwise not get and not be able to build them this house. Otherwise, I think that as per the OSR site (
http://www.osr.nsw.gov.au/lib/doc/rulings/rrfhog1.pdf
) they don't actually need to transfer the land across to me for me to get the FHOG.
As for centrelink benefits, they already don't seem to qualify and everytime you ask Centrelink about the rules and impacts you get a different answer.
Thanks for the idea – but it would be a little difficult if the ATO ran a check and my tenant only gets a pension from the government of say $100/week and still manages to pay me $200/week in rent!
Thanks everyone. I actually called the ATO and asked them also. They said so long as I charge "commercial" rental rates I would have no problems with the standard deductions. However if I charge only say 50% of the market rate I can only claim 50% of the normal deductions. I wonder though if the ATO though make any allowances for not only saving on agency fee's (thanks for that tip) but also the fact that they had transferred the land to me in the first place. I suppose the ATO wouldn't allow that because arguably then I'd have to claim some value of the "transfer" as prepaid rental income.
