Forum Replies Created
Mamj, I’m not sure about NSW but in Qld I’m also careful to ensure that the agent’s appointment says that commission is only earned when settlement is achieved (and not some earlier point – like the contract being signed). You don’t want to pay them unless it all goes through and you have the cash in your hand.
SKM
Definitely one for some professional advice Smiley, to see if you can find an applicable exemption in the relevant State’s Duties Act. My feel for it is that you will be up for stamp duty because the new block will effectively be going from your ownership to the company’s ownership.
Let us all know the professional’s answer if you get one.
SKM
As a supplement to Richard’s excellent response to you, there is no vendor stamp duty in Qld (like there is in NSW), and so stamp duty on a sale in Qld is generally a purchaser problem.
For more information on CGT, the ATO has a pretty useful introduction guidebook available from its wesite (www.ato.gov.au). Assuming the property was purchased post-1985 and assuming the gain is coming back to individuals (ie the villa is not held in a company), then as I understand it 50% of the capital gain will be added to your taxable income and assessed at your marginal rate of tax. But the 50% discount is only available if you have owned the villa >12 months – so if you are close to the 12 mths, be careful to check the dates. I think the relevant dates are date of contract and not date of settlement.
SKM
Grillo,
I reckon Terryw is on the money re the way to negative gear through a trust. (Have a look at chrisbatten.com.au)
I like OSS’s thinking, but I think when you see a lawyer or accountant about it they might point you to something called Ure’s case and say that the ATO won’t let you claim the deduction.
Hope that helps.
SKM
