Off market transfer question

I got a bunch of shares which I want to transfer from personal name into a trust using off-market
transfer form, can I use at cost price or it has to be at market price?
Obviously at cost price is prefer else I trigger a capital gain and must pay tax even though no money has exchanged

 

Why do that?
And why is no money changing hands?

Best to sell and have the trust purchase them back.

Market value substitution rules apply for undermarket value transfers.

 

Yep with you on that. Maybe the trustee is just a custodian ?

What is the commercial reasoning ? Part IVA ?

 

Going forward it works out better as I can start ditching dividend to my older kids and share the capital gain around with them

I am moving everything to a corporate trustee account, future purchases also in the corporate trustee.

So the rules are I do at market price? it has to happen trying to work out a cheaper way of doing thing.

It more about restructuring my holding so it tax effective, I generate a fair bit of cash flow and capital gain each year from the stock market so personal tax bill is not pretty I prefer it to be smaller

 

I was asking who do an off market transfer? Have you sought legal advice?

 

Market price on the date of transfer agreement. And thats the basis for your CGT calc anyway even if you agree to a lesser price.

No duty on off market transfers any more.

Are you gifting them to the trust ? Selling - Trust have the cash ? Or Transfer with no consideration but an expectation to be paid later ? All legal issues.

 

Comsec there is a form for it, can easily be done once off cost $54.00, transfer price is for record keeping and tax purpose only.

What comsec does is they take my CHESS holding and Move over to Trust Holding and then charge 54.00 no money involve apart from the fee.

This is shares only not properties by the way

 

But why do the off market transfer?

 

Cheaper as it a once off cost of 54.0 doesn't matter how large the parcel is
on the market trades I pay 2 lot of fees at .012% of the parcel value work out much more expensive not by much but a few hundred bucks is better than nothing and it doesn't involve much work just 2 form to fill and send in.

so it equates to 10 minutes work for a few hundred bucks

 

You don't seem to understand the consequences.
This must be a small parcel of shares?

 

What consequences are you talking about?
Sell X on market from name Y via Commsec paid any capital gain if required
Buy X on market under name Z via Commsec

or do the same thing with a form and same broker facilitate the trades

 

You should seek legal advice.

Is the trustee going to pay you?

 

I shall talk to my advisor next week

No, if I do the trades on market I pocket the cash then I can use the same cash to buy under XYZ pty ltd name as corporate trustee.

the same thing would have happened if I use this method but cheaper brokerage
How do I transfer shares held by another party to CommSec?

then I pay capital gain if there is any gain

this is a family trust not SMSF trust

 

Hope your advisor is a solicitor!

You are creating a legal mess.