Hi all,
First post here so please take it easy on me.
Here’s the scenario, brother and I are looking at doing a straight swap his for mine.
what’s the best way to minimize the stamp duty? Do we have to transfer the houses at market value?
Say if we were to transfer the houses under market value in order to minimize the stamp duty, and at later stage sell the house. In theory, CGT then would be more because the initial price was too low.
Any advice??? thanks all
What are your objectives of doing the swap?
An alternative would be to live in each others properties, without purchasing from each other, then you get other tax benefits also.
edskii wrote:Hi all, First post here so please take it easy on me. Here's the scenario, brother and I are looking at doing a straight swap his for mine. what's the best way to minimize the stamp duty? Do we have to transfer the houses at market value? Say if we were to transfer the houses under market value in order to minimize the stamp duty, and at later stage sell the house. In theory, CGT then would be more because the initial price was too low. Any advice??? thanks allStamp duty is payable at market values, as is CGT.
The best way to avoid this is to keep as is.
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
It's complicated, long story short that the swap is a must
Ultimately from tax point of view, I just to minimize the stamp duty as much as I could given we're both not far from paying off our houses.
thanks all
Well, there is no way that I know of to minimise stamp duty on a transfer like this – other than to get a valuer and tell him the situation and ask for a valuation as low as possible. However this may only save you a few hundred.
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
wow that was a quick response
Terry, you're a great help
thanks again
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