Hi please help. my husband and I have purchased a half completed duplex with his sister and her husband (4joint owner) the duplex is not subdivided and is still one title. We purchased for 2.1k and shared the stamp duty on the 2.1k already. Now the duplex is ready to be separated and they will keep one and we will keep one. Instead of us all owning both, they will own one side and we will own the other. 1) do we pay stamp duty all over again? 2) if the value changes do we pay stamp duty? And if so ?? do they count we have already paid on 2.1k (so would they say you paid half 2.1k ??? So $1050000 each??) 3) any chance we pay no additional stamp duty??
lol you are talking 2.1 million dolla property, go give the lawyer who did your deal a call and ask them about the stamp duty, I'm sure they'll be more than able to sort you out.
1. Yes stamp duty again on the value transferred. 3. No. But this could have all been avoided if u had set up a deed of partition at purchase. Also consider cgt and gst
Thanks but it's set up as is... GST? Why would I pay gst? It's not new I am the second owner?? Also So value transferred?? We are splitting it equally? We have paid approx 50k each being the stamp duty on 2.1k is approx 100k total so ?? What we pay another 50k that can't be right?
GST might apply to the transfer of new property - you are subdividing it. Give me an example of the values and % ownership. It will probably be $25k duty each approx
Hi Terry Thank you for your help. When we purchased the two duplex sold as one (as not subdivided through council) the box was ticked that the previous owner paid stamp duty? I think ??? The 2.1k we paid was inclusive of GST. So are you saying we will have to pay gsT when we split them ? And on what value? Also I'm still not understand the stamp duty. We paid on a whole of 2.1k, so have paid aprx 50k each When we split each duplex, each may be valued approx 1.3k each? But we are not paying any money and we consider it a same value 50/50 split between them and us
That doesn’t really change anything It seems the whole property cost $2.1million? It has 4 names on title. ABCD assuming equal shares or JT This is being split so each half is worth $1.05mil (or possibly more) When it is split there will be Lot 1 and Lot 2 Lot 1 has 4 names Lot 2 has 4 names With lot 1 – A and B will transfer their shares to C and D The value of this transfer will be $502,500 C and D will pay duty on this amount With Lot 2 – C and D will transfer their share to A and B The value of this transfer will be $502,500 A and B will pay duty on this amount Since each block is new there may be GST on the transfer There may also be CGT payable as well because C and D didn’t live in the halt of the duplex that is being transferred to A and B so a main residence exemption may not apply.
You will need to convince the ATO and the OSR that you each held half of the property on trust for the others. Sounds like you need some expensive legal advice.
that's what I said before =) LOL. Either that or just hold the property with 4 names and not go making things complicated.
