Hi,
I am hoping a kind NSW person might help! I am considering buying a property in NSW to buy, fix and sell, but would like to confirm my understanding the OSR website. What taxes are payable on purchase and sale?
Purchase price is $265k and est sale price $335k
1. Transfer of Land or Business (I assume this is Stamp Duty) – 3.5% = $9275
2. Vendor Cuty – 2.5% = $8375
3. Mortgage Duty? – I assume this is paid by the bank?
4. Capital Gains Tax as per other states.
If I use it as my PPOR, I assume I can claim exemption of the Vendor Duty and Capital Gains (but not Stamp Duty). Is there a minimum time frame that is considered reasonable to hold the property for to claim this?
Many thanks if anyone can assist.
HC
HC,
Try this link http://www.national.com.au/Online_Services/0,,21473,00.html#3
Choose Home Buying & Selling cost calculator. (It just does not include CGT)
Hi HC,
The OSR (NSW) uses the same determining factors when identifying a property as a main residence or not. The following is an excerpt from the ATO CGT Guide.
IS THE DWELLING YOUR MAIN RESIDENCE?
The following factors may be relevant in working out
whether a dwelling is your main residence:
a) the length of time you live there – there is no minimum time a person has to live in a home before it is considered to be their main residence
b) whether your family lives there
c) whether you have moved your personal belongings into the home
d) the address to which your mail is delivered
e) your address on the electoral roll
f) the connection of services (for example, phone, gas orelectricity)
g) your intention in occupying the dwelling.A mere intention to construct or occupy a dwelling as your main residence – without actually doing so – is not sufficient to get the exemption.
Even though the settlement dates are used to calculate the period for which the main residence exemption applies, the dates you enter into the purchase and sale contracts are important if your main residence is not fully exempt.
Derek
[email protected]Property investment advice and researched property in quality locations available.
Thanks that is a nice tool.
Have to pay the mortgage duty as well!
Unfortunately stamp duty on the mortgage is not paid by the bank, but by the borrower.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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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