stamp duty if buying a share of property

[julie]

A quick query. If I buy a 50 percent half share of my sister's house, with my name on the title etc, will I have to pay stamp duty again given she has paid it on the original purchase of the house. I think I am wondering if it would be considered a resale of 50 percent of the property and the government might want second helpings.


She's just under a bit of pressure and wondered if I'd like to buy a half share , hence the question. thanks anyone who knows.

 

[Terry_w]

Yes. It will be a transfer of dutiable property. Duty will be on the value transferred.

You will also have to reapply for loans (if financed).

 

[matto_]

depends on the state? Assuming sydney/nsw - so yes......

 

[Aaron_C]

50% stamp duty on the full value of the house is payable.

 

[Terry_w]

50% stamp duty on the full value of the house is payable.

Not really. Stamp duty will be based on the value of the portion transferred.

eg. If the house is valued at $500,000 and a 50% share is transferred then

a) stamp duty will be levied based on the $250,000 amount.

not

b) 50% of stamp duty based on $500,000

 

[Terry_w]

depends on the state? Assuming sydney/nsw - so yes......

I don't know any state with exemptions for transfers between siblings.

 

[Bigtone]

Not really. Stamp duty will be based on the value of the portion transferred.

eg. If the house is valued at $500,000 and a 50% share is transferred then

a) stamp duty will be levied based on the $250,000 amount.

not

b) 50% of stamp duty based on $500,000

in victoria the answer is b,

 

[Terry_w]

in victoria the answer is b,

How could this be?

See s20 Duties Act (VIC).

(20)(1) The dutiable value of dutiable property that is the subject of a dutiable
transaction is the greater of-

(a) the consideration (if any) for the dutiable transaction (being the
amount of a monetary consideration or the value of a non-monetary
consideration); and

(b) the unencumbered value of the dutiable property.

 

[matto_]

Misread op. I thought it was the ole spousal sale.

Oh well.