Stamp Duty / CGT advice for subdivision

Discussion in 'Accounting & Tax' started by jlambas, 8th Jun, 2019.

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  1. jlambas

    jlambas New Member

    Joined:
    8th Jun, 2019
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    Melbourne
    Hi

    2 years we transferred a home into 3 names, let’s say A,B and C. A and B are 50% owners (married couple) and C (brother of A) owns the other half. When doing this we paid stamp duty (based on $850k).

    We then demolished the property and built two townhouses.

    A and B live in one, and C rents his townhouse as an investment.

    We are now in the process of doing a subdivision / partition agreement.

    A and B will become the sole owners of the property they live in, and C will become sole owner of his investment property.

    Assuming the value of the land is unchanged, my question is what stamp duty and cgt would be payable, given the same 3 people paid stamp duty 2 years ago ?

    I assume A and B will be minimal as it is their PPOR, but I’m not sure....

    Any guidance is much appreciated.
     
    jlambas, 8th Jun, 2019
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
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    Unless you partitioned it at the beginning any change in ownership will result in duty. It would also be a CGT event.
     
    Terry_w, 8th Jun, 2019
    #2
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