Hi guys,
We are currently doing a 3 unit development.
We set up a company for the sole purpose of the venture (family/discretionary trust as shareholder) with my wife and I directors.
Purchased a house, intended to build 4 and sell all...however Council intervention meant we got approval for 3.
We have sold 2 off the plan and building/construction is due to start in June 2015.
Now we wish to keep Unit 1 for ourselves to live in.
I thought we could just sell it from the company to my wife, ie sign a contract off the plan, to sell from the company to my wifes personal name the same as we did for the other 2 we sold off the plan to non related parties. Obtain a real estate agent appraisal letter for the value and use this value.
I thought that by doing this we get Unit 1 out of the company and it becomes our PPOR so exempt from tax when we sell 5-10 years down the track, and we also get the stamp duty savings that come with buying off the plan, basically we pay stamp duty on current land value rather than the full completed value at the end, a significant difference.
However, the advice I have received so far is that because it is a related party transfer (my wife is a director of the company and Unit 1 would be sold into her individual name) she can't get the stamp duty benefits that a normal off the plan buyer receives, ie they will calculate the stamp duty at the time of transfer by which time construction will have finished and the value would be considerabley higher.
Subdivision is to be completed after construction.
As you can see my thoughts are different to the advice received so far, can anyone offer any further clarification or experience on how it is treated (mainly the stamp duty treatment)?
Many thanks in advance.
We are currently doing a 3 unit development.
We set up a company for the sole purpose of the venture (family/discretionary trust as shareholder) with my wife and I directors.
Purchased a house, intended to build 4 and sell all...however Council intervention meant we got approval for 3.
We have sold 2 off the plan and building/construction is due to start in June 2015.
Now we wish to keep Unit 1 for ourselves to live in.
I thought we could just sell it from the company to my wife, ie sign a contract off the plan, to sell from the company to my wifes personal name the same as we did for the other 2 we sold off the plan to non related parties. Obtain a real estate agent appraisal letter for the value and use this value.
I thought that by doing this we get Unit 1 out of the company and it becomes our PPOR so exempt from tax when we sell 5-10 years down the track, and we also get the stamp duty savings that come with buying off the plan, basically we pay stamp duty on current land value rather than the full completed value at the end, a significant difference.
However, the advice I have received so far is that because it is a related party transfer (my wife is a director of the company and Unit 1 would be sold into her individual name) she can't get the stamp duty benefits that a normal off the plan buyer receives, ie they will calculate the stamp duty at the time of transfer by which time construction will have finished and the value would be considerabley higher.
Subdivision is to be completed after construction.
As you can see my thoughts are different to the advice received so far, can anyone offer any further clarification or experience on how it is treated (mainly the stamp duty treatment)?
Many thanks in advance.
