Hi all
A scenario was suggested to me today, just interested if anyone has done it (or thinks it can't be done).
Two people set up company with 50/50 ownership of company. Company purchases property and develops four townhouses. At subdivision, a deed of partition is used to transfer titles of subdivided properties to personal names of company owners (2 each). As the interest in the properties is essentially the same before and after subdivision no stamp duty is payable (VIC) , and the company can claim the gst credits for the development.
Any thoughts?
A scenario was suggested to me today, just interested if anyone has done it (or thinks it can't be done).
Two people set up company with 50/50 ownership of company. Company purchases property and develops four townhouses. At subdivision, a deed of partition is used to transfer titles of subdivided properties to personal names of company owners (2 each). As the interest in the properties is essentially the same before and after subdivision no stamp duty is payable (VIC) , and the company can claim the gst credits for the development.
Any thoughts?