Deed of Partition and CGT

Structuring is legal advice, there is no need at all for a 'financial' advisor as this involves only legal advice covering stamp duty, trust law, income tax etc. what sort of advice was the 'financial' advisor supposed to give you and who was this?

what are the cost estimates?

 

I have gone to 3 seperate property lawyers and all have indicated that I would need to receive seperate tax advice from someone qualified to provide me with that advice. In reliance on that advice, I would then instruct them for the preparation of the documentation - so it’s essentially a 2-part process.

Quotes are in the order of $2k - $5k for tax advice and then $3k - $8k for document preparation.

If you think it can all be done by 1 person, are you able to recommend someone who can put this all together for me?

Cheers

 

what state is the property in?

 

Victoria

 

What about Vincent?

 

yes Vincent.

 

Yep, Vincent and I are currently in discussions

 

@Paul D ok good stuff...you might be the client he mentioned that might have some other options where a Deed of Partition might actually might not be worth doing as the other costs (CGT, GST, etc) might not outweigh the other legal costs.

 

Yeah, it might be - we spoke as recently as yesterday.

In the event that we:
1. Buy the property and shortly after subdivide BEFORE construction (no ‘gain’ would be made between acquisition and subdivision anyway); and

2. There’s another way of avoiding the stamps at subdivision

Then yes the costs may outweigh the benefit.

I think I’ve mentally exhausted all of the avenues and this really is the only way, for our situation, that a certificate of title can individually be obtained each.

It’s tricky because you’re trying to carry out a cost-benefit analysis before providing instructions to advisors, but there’s a high cost involved in obtaining certainty.

 

agreed unfortunately the cost can be even higher if certainty isn't gained and you leave it to chance later on.

 

Unfortunately I agree haha

 

I would have concerns for a profit making enterprise and a transfer of title under a DOP and the GST cost alone. If a lender is involved they may also want clarity on duties if they see something unconventional in a transfer. Sometimes the lender will throw that one in later.

 

The houses are being used for our PPR’s and this is our sole intention from the outset.

No ‘taxable supply’ = no GST

 

It might be a taxable supply but you might not be conducting an enterprise

 

Yeah, so no 'enterprise' = no taxable supply (s 9-5)

 

You may be surprised how many ignore the enterprise issue in their haste.

 

I can imagine!