A question I have tried to find answers to all to no avail. I’ve joined here hoping that someone can help or advise.
1. We own 2 properties. Our DIY Superfund owns 1/8 of each of them. A DIY superfund cannot own a mortgaged property. Hence, we cannot use our equity in these properties to further invest.If we sell our 1/8 share of one property and use it to buy another fraction of the second property, firstly I understand we would need to have both properties professionally valued and we would be up for stamp-duty and Capital Gains Tax as they were purchased some time back. Any suggestions ? I know that sometimes people advertise a property swap…does that avoid stamp-duty and CGT ? Solicitors say “Ask an accountant” and accountants say “Ask a solicitor”
Any/All suggestions greatly appreciated….
IreneMy suggestion is to sack your accountant who advised you to purchase 1/8 of your properties in your super fund. Other than that, I can be of no real assistance on this one.
Robert Bou-Hamdan
Mortgage AdviserThank you for reading my post.
I wholeheartedly agree !
Doesn’t help our predicament though….
Regards,
IreneWhat a mess!
I would think it a good idea to get the superfund out of those properties completely would be a good idea. You could buy them from your superfund. Stamp duty would be payable, but it would only be charged on the portion purchased. The superfudn would have to pay CGT, but I beleive this is only 10%.
At least this would separate the two entities and allow you to leverage off the properties to buy more.
Better talk to a good accountant first.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]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
Hi Irene
In my former life as an accountant I came across the situation whereby a person’s super fund owned (well put up the deposit) for their home.
We went through the usual arguments and pain of stamp duty and capital gains tax.
The numbers at the time indicated tax wasn’t the main problemm but stamp duty.
I can’t remember all the ins and outs but as there was no beneficial change in the ownership of the property (ie beneficiary of super fund or in person’s name) then it wsa agreed that property could be transferred and there was no stamp duty consequences.
The person you need to see is a solicitor who understands such matters. I’m not sure if it still can be done but I did it (albeiet years ago).
A lot will depend on which state you are in. The one I am referring to was in Victoria.
You will also need to “repay” the super fund as well.
Hope this helps.
Dave
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