hi all, Just thinking that we have a 4 bedroom house under a company name between myself and brother with 440k owing and I have a 3 bed house I live in which still has a 200k mortgage which I can claim nothing on. I am thinking if I can buy the 4 bedroom house and make it my primary place of residence from company and let the company buy my existing house(both about same price 700 - 800 k and develop this land with 2 house (900 sq block). Besides the stamp duty is this possible and how do I come up with a price to buy and sell to reduce stamp duty for both IE can I buy and sell at $600,000? I hope you understand Thx Tim
Your company will incur a CGT liability on any sale of its house to you (or anyone else) if there has been a CG since your company purchased it. There is no CGT discount for properties held for 12+ months by a company, that you get when held in personal names. Stamp duty is to be calculated at market values not some lowball arbitrary number you come up with to reduce transaction costs. It would be best to get a valuation from a registered valuer or take an average of say 3 x market appraisals from real estate agents in the local area. You need to seek professional accounting advice before doing anything, especially when doing developments.
Sounds like an exercise in donating stamps to Govco coffers Maybe you would be better off doing all you can to improve your ppor and sell it. Then find another project (assuming you have the funds to develop the company site). @Terry_w will have some advice in his tax tips (if you do a search)
Yes it's possible. Duty would apply at market value as would CGT. New loans needed. Might be a slim chance to argue a trust exists and avoid duty and or CGT.
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