All Topics / Legal & Accounting / CGT for Foreign Investor & gifting…. Please help..

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  • Profile photo of keren_mx5keren_mx5
    Participant
    @keren_mx5
    Join Date: 2010
    Post Count: 17
    May 21, 2014 - 9:44 pm

    Hi all,

    I need help..
    My uncle who is a foreigner bought a property 10 years ago & is now wanting to gift the property to me with no $$ involved.
    So the property would be transferred to my name which will involved stamp duty but does my uncle need to pay CGT?

    If so.. how bad would it be?

    Thanks all.

    Is there exemptions for foreigners?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 21, 2014 - 9:48 pm

    Yes it would be a CGT event. No exemption if it wasn’t his main residence. And if he is a non resident then no 50% CGT discount any any gains made after a certain date (last year I think). He should seek tax advice as you should too.

    He may also have to pay tax in his home country.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of keren_mx5keren_mx5
    Participant
    @keren_mx5
    Join Date: 2010
    Post Count: 17
    May 21, 2014 - 9:52 pm

    Hi Terry,

    This is really bad news.. hmmm
    Well he has not earned a cent from the property as he had let us stay in it for that period.

    There is no other way of getting a discount?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    May 21, 2014 - 10:46 pm

    Keren you say he hasn’t earned a cent from the property but CGT is not based on the rental income received but on the increase in value between the net sale price or current market value and the original purchase price less adjustment.

    As Terry mentioned would suggest he definitely seek some specialist advice.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 21, 2014 - 11:26 pm

    Well there may be various things he can claim to lessen the pain – stamp duty, rates etc

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 5 posts - 1 through 5 (of 5 total)

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