Transferring property

Discussion in 'The Buying & Selling Process' started by foxyleemoo, 19th Jun, 2015.

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  1. foxyleemoo

    foxyleemoo Member

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    Hi all.

    Does anyone know, is it legally possible to
    1. Transfer a property held in your own name to a discretionary trust?
    2. Transfer the property from the trust into personal and or joint SMSF?

    Cheers
     
    foxyleemoo, 19th Jun, 2015
    #1
  2. Terry_w

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

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    1. Yes.
    2. No, not unless it is commercial

    You could use a unit trust and transfer the units to a SMSF - wait 3 years though.
    Cheaper duty to transfer units rather than title to land. too. Property cannot be mortgaged though.
     
    Terry_w, 19th Jun, 2015
    #2
  3. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    A transfer of the actual property (as opposed to units or shares in the owning entity) is effectively 1 party selling it (CGT & loan exit costs) to another party (Stamp duty & loan establishment fees). I am doing this for a client who bought less than 6 months ago in the wrong entity and they are paying dearly. $145,000 in stamp duty and $8,700 in title registration fees. Tax on way out will also hurt (DA received in middle so have had a $500k ish value increase)
     
    RPI, 19th Jun, 2015
    #3
  4. Terry_w

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

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    Wow
    But I guess at the time he was please he saved on legal fees on the way in?
     
    Terry_w, 19th Jun, 2015
    #4
  5. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Yep.
    Bought a property with development potential in an SMSF with a LRBA.
     
    RPI, 19th Jun, 2015
    #5
  6. See Change

    See Change Well-Known Member

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    LRBA ?

    cliff
     
    See Change, 19th Jun, 2015
    #6
  7. Terry_w

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

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    limited recourse borrowing arrangement.
     
    Terry_w, 19th Jun, 2015
    #7