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QLD - Transferring property to yourself in a trust

Discussion in 'The Buying & Selling Process' started by R377, 6th Oct, 2016.

  1. R377

    R377 Well-Known Member

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    Adelaide - Southern
    Just got hit with more land tax so I am going to transfer a property into a new trust.

    I am 99% sure I will have to pay stamp duty on the transfer, there is no way around it is there ?

    Ive had the property 2-3 years, land tax shows its gone up about $40k, what sales price i can reasonably use to get away with ? Can i use the orig purchase price ? or slightly less or slightly more ?

    Any other info or advice I need to be careful of ?

    thanks
     
  2. Player

    Player Well-Known Member

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    If it were me, i would have it valued. At the very least get an appraisal of value from a real estate agent.

    Be mindful of capital gains tax on the deemed profit upon transfer.
     
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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Seek legsl advice about trust splitting.
     
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  4. CU@THETOP

    CU@THETOP Well-Known Member

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    I agree with both Player and Terry. Stamp duty inevitable. Chat to your accountant too.
     
  5. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Wise property guy once told me that stamp duty is the cheapest tax you will ever pay.
     
  6. RPI

    RPI Property Lawyer, Town Planner Business Member

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    You will pay stamp duty on the buy side and CGT on the sale side. To have your transfer documentation stamped you will need to provide at least a CMA from a real estate agent with no less than 3 like sales.

    What about sucession planning? If you have 2 children (or intend to) then maybe you are better transferring the property into 2 trusts. A purely incidental benefit of this is that each trust has it's own land tax threshold.
     
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  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Not many people consider the succession on death side with trusts. You may control the trust now but when you die it cod get messy to Darryls point should be considered.

    And this transfer could be used as part of a debt recycling strategy as well as an estate planning strategy. You might be able to cause tje loans to increase with proceeds from the sale being used to pay down non deductible debt.