Hi,
does anyone know what taxes are payable (if any) for both parties if one transfers their house/land (primary place of residence) to another (who is claiming FHOG)? Are there any taxes that would make the transfer unworthwhile to pursue?
Also – any advice or things to be aware of (tax/superannuation/pension etc) implications in this arrangement (if the party giving up the house/land don't currently have any income and are close to retirement age.
Many thanks.
Stamp Duty for 1 which maybe concessional depending on the State and the purchase price.
Also Transfer would need to be at market valuation.
Richard Taylor | Australia's leading private lender
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!!
Yes, in NSW you will be charged stamp duty on the value. OSR may even require you to get a valuation to back it up. One of my clients did this recently.
There may also be implications if the gifter goes into bankruptcy. If they go bankrupt creditors will look to see what assets were disposed of and then look into those transactions. If they are not done at market rates they may try to reverse those transactions on the basis of them being done to defeat creditors.
If the person gifting is going to apply for the pension, then the social security office may penalise them for up to 2 years.
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
Thanks Terry, What if I get the first home owners grant – I should be exempt?
depends on your situation and the state you are in. In NSW you may be exempt up to around $550,000 i think. But in VIC you are only exempt if you are married with children and the cut off is much lower.
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
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