Stamp Duty

[Andrew_A]

A question about stamp duty in QLD.

Situation: IP worth 375k approx.. Owned by person A 90% and person B 10%. "A" has been claiming 90% of the -ve gearing and "B" 10%.. B has not contributed to the mortgage at all, only provided extra property so that "A" could get the original loan..

Purchase price of IP: 275k

Now "A" wants a refinance to get "B" off the title (and release "B" and her PPOR from the X-collateral!)

What happens with CG and Stamp Duty considerations??

My take on the matter is that "B" will have to pay CG on 10% of the growth. (ie: 10k) and "A" will be up for some stamp duty.. But I'm not sure how much??

Thanks for any advice :)

[Jamie]

A question about stamp duty in QLD.

Situation: IP worth 375k approx.. Owned by person A 90% and person B 10%. "A" has been claiming 90% of the -ve gearing and "B" 10%.. B has not contributed to the mortgage at all, only provided extra property so that "A" could get the original loan..

Purchase price of IP: 275k

Now "A" wants a refinance to get "B" off the title (and release "B" and her PPOR from the X-collateral!)

What happens with CG and Stamp Duty considerations??

My take on the matter is that "B" will have to pay CG on 10% of the growth. (ie: 10k) and "A" will be up for some stamp duty.. But I'm not sure how much??

Thanks for any advice :)


Hi Andrew,

Are/were the parties in any sort of relationship (eg married/defacto?)

I know most states have in place an exemption for transferring property from one partner to another, with the only cost being a nominal administration fee.

I think in QLD its Exemption number 41 (Section 422) which provides for an exemption between married/defacto couples. You can find some info on it here (http://www.osr.qld.gov.au/taxes/duties/transfer_general_forms.htm), particularly in the explanatory notes of Form 2.2.

If the parties are not married or defacto, then Im not much help :)
Jamie.

[Andrew_A]

Hi Andrew,

Are/were the parties in any sort of relationship (eg married/defacto?)

I know most states have in place an exemption for transferring property from one partner to another, with the only cost being a nominal administration fee.

I think in QLD its Exemption number 41 (Section 422) which provides for an exemption between married/defacto couples. You can find some info on it here (http://www.osr.qld.gov.au/taxes/duties/transfer_general_forms.htm), particularly in the explanatory notes of Form 2.2.

If the parties are not married or defacto, then Im not much help :)
Jamie.Mother and Daughter.

[quiggles]

I have the suspicion that stamp duty will be payable, but only on the value of the interest transferred, not on the whole property.

[madmurf]

Hi All

What about CG. Hows is this looked at by the ATO as its a transfer of name and not actually a sale.

Cheers

[Brizzy Boy]

Hi,
my daughter is in this boat at the moment, she is buying out her cousin's share of the unit they own in Brisbane, my solictitor has worked out that on the 120k that is the 50% share, my daughter has to pay $3000.00 in s/duty plus $115.00 in registration fees plus solicitor & bank charges on top of all that.
Hopefully all will be over in about 2 weeks. Not sure on CG!
Regards
John

[Andrew_A]

Looks like Stamp duty will have to be payed on the 10% of total price.

Turns out that a refinance isn't wanted. But the 10% has to be purchased still, does this mean that mortgage duty and refinance fees can be avoided?

Presumably there might be some sort of release fee Aussie Home Loans charge for releasing their claws from the extra collateral?

I'm assuming that there is no such thing as a transfer here, but it will be treated as a sale.