Ppor Title transfer pre subdivision to trust

Hi
Bit of background info:
I've spoken with a property accountant and worked out that we are going to set up a unit trust with my husband and I as beneficiaries. We are going to buy, Reno and rent out property with the occasional flip.
We currently have our ppor in nsw and are in the midst of building a new property on the rear of block ( subdivision happens once build is complete) we were planning to turn these both into ip
my questions are these:

Is stamp duty payable on transfer of ppor to unit trust?

If so, if transfer was done before subdivision is issued would the transfer then only attract 1 stamp duty charge?

Or can we transfer the newly created block / new build into trust at time of
subdivision without attracting stamp duty?
Then rent new build out as ip and keep ppor for time being?

I was also advised by the accountant that by "flipping" in a trust structure does not attract capital gains as it is income generating activity? Is this correct?

Many thanks
 
You should be speaking to a lawyer too - trusts are complex legal relationships.

Yes stamp duty on the market value as of the date of transfer.

Carefully consider how you structure the transfer too or the asset protection benefits will be weakened.
 
Hi
Bit of background info:
I've spoken with a property accountant and worked out that we are going to set up a unit trust with my husband and I as beneficiaries. We are going to buy, Reno and rent out property with the occasional flip.
We currently have our ppor in nsw and are in the midst of building a new property on the rear of block ( subdivision happens once build is complete) we were planning to turn these both into ip
my questions are these:

Is stamp duty payable on transfer of ppor to unit trust? YES..And CGT. And its based on market value

If so, if transfer was done before subdivision is issued would the transfer then only attract 1 stamp duty charge?

Or can we transfer the newly created block / new build into trust at time of
subdivision without attracting stamp duty?
Then rent new build out as ip and keep ppor for time being?

I was also advised by the accountant that by "flipping" in a trust structure does not attract capital gains as it is income generating activity? Is this correct?

Many thanks

OMG - No accountant should be setting up a trust and advising on property without advising on stamp duty.
- Deed stamp duty
- Property held on trust / acquired
- Transfer of units & strategies to avoid transfer duty.

I'm confused....Will the trust sell the former portion of the PPOR land / build ?? If so I see a huge stamp duty cost that could be avoided.
 
Thanks for your replies.
Would we be better off selling both then after subdivision and lending the money to the trust to buy an investment property to start off our portfolio?
Our reasoning behind wanting to keep one or both is that they're in a high capital growth area.
To clarify we were wanting to know what costs were associated with transferring to trust or at time of subdivision on paper are the 2 new titles automatically issued in the name of the current title or can we nominate them to be out in the name of the trust?
Thanks
 
To clarify we were wanting to know what costs were associated with transferring to trust or at time of subdivision on paper are the 2 new titles automatically issued in the name of the current title or can we nominate them to be out in the name of the trust?
Thanks

The new titles will need to be in the name of the existing title holders OR stamp duty paid on the value of the land transferred.

e.g before maybe $500,000
after maybe $600,000 with each title valuing in at $300,000.
If one of these titles goes into the trust then stamp duty would be based on $300k.

you also need to consider GST too as these will be new residential land.
 
Thanks for that info. Can anyone advise on following:
Would we be better off selling both then after subdivision and lending the money to the trust to buy an investment property to start off our portfolio?
Our reasoning behind wanting to keep one or both is that they're in a high capital growth area.
 
Thanks for that info. Can anyone advise on following:
Would we be better off selling both then after subdivision and lending the money to the trust to buy an investment property to start off our portfolio?
Our reasoning behind wanting to keep one or both is that they're in a high capital growth area.

That is a vague question. Even if u paid me I wouldn't answer that as I don't have a crystal ball but would go thru the options and implications and let you decide.
 
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