Changing percentage of ownership

[dgraham]

Hi, Could you advise me how to change ownership of IP say from 50/50 to 90/10.

Regards

David

[djsherly]

I thinks it's as simple as chaning the title and paying the stampduty.

[always_learning]

I thinks it's as simple as chaning the title and paying the stampduty.

Dont forget the proportion of capital gains tax if it is an IP!

[djsherly]

missed that. thanks!

[Bill.L]

Hi all,

I find the subject of selling part of a property very interesting, and there are several questions that I have asked the forum previously and not received an answer.

For example, assume I bought a house in Vic for $500k and in 10 years time it is worth $1m.
I wish to sell 10% of the property. Does the purchaser pay stamp duty on the $100k, = $2,200 or do they pay stamp duty on 1/10 of the $55,000 that a $1m would attract?? or do they pay some other figure??

With cap gains tax, I assume that the tax payable would be on 50% of the gain of the 10% of the property I wished to sell, that is on the gain from $50k to $100k. In which case only $25k would be added to my marginal rate of tax.

For IPs outside of a trust structure, selling part of a property each year to a young relative who wishes to get into investment, doing it this way could help fund a retirement, minimise tax(and for that matter stamp duty), as well as helping a relative get started on the investment path.

Comments anyone??

bye

[NigelW]

Hi all,

I find the subject of selling part of a property very interesting, and there are several questions that I have asked the forum previously and not received an answer.

For example, assume I bought a house in Vic for $500k and in 10 years time it is worth $1m.
I wish to sell 10% of the property. Does the purchaser pay stamp duty on the $100k, = $2,200 or do they pay stamp duty on 1/10 of the $55,000 that a $1m would attract?? or do they pay some other figure??

With cap gains tax, I assume that the tax payable would be on 50% of the gain of the 10% of the property I wished to sell, that is on the gain from $50k to $100k. In which case only $25k would be added to my marginal rate of tax.

For IPs outside of a trust structure, selling part of a property each year to a young relative who wishes to get into investment, doing it this way could help fund a retirement, minimise tax(and for that matter stamp duty), as well as helping a relative get started on the investment path.

Comments anyone??

bye

Hi Bill

Stamp duty is always payable on the higher of the consideration (ie the price paid) or the market value. It follows that if the market value of the property is $1m and they buy 10% of the property then duty should be payable on $100k or the price they pay for it. (Ignoring arguments about whether a 10% share in a property is actually worth 10% of the price of the whole property).

Re CGT, again that sounds like a logical conclusion (subject to it being full market value).

Of course you'll get your own tax advice.

Cheers
Nigel.