Transfer of property

[Gillies]

Hi guys, have a property in my personal name, bought 4 yrs ago, have lately set up a trust. Now I'm subdividing the property as I write this, if I transfer the property into my trust will I be hit with cgt, if so and I do it after the land been stamped as 2 lots would I get hit with cgt on both the house and land value.
Would it be best to transfer now while it's still 1 title.
I think I don't get hit with stamp duty fees when changing ownership.

Is this correct or can some help with some info

 

[Terry_w]

Hi guys, have a property in my personal name, bought 4 yrs ago, have lately set up a trust. Now I'm subdividing the property as I write this, if I transfer the property into my trust will I be hit with cgt, if so and I do it after the land been stamped as 2 lots would I get hit with cgt on both the house and land value.
Would it be best to transfer now while it's still 1 title.
I think I don't get hit with stamp duty fees when changing ownership.

Is this correct or can some help with some info

CGT on transfer unless an exemption applies.
Stam duty too probably.

Both would be assessed at market value as of the date of transfer.

 

[Meldix]

stamp duty applies.. cgt may but depends on accounting factors

MDH LEGAL
Melissa Dixon (08) 9344 1677

 

[Colin Rice]

stamp duty applies.. cgt may but depends on accounting factors

MDH LEGAL
Melissa Dixon (08) 9344 1677

Welcome to SSF Mel

 

[Paul@PFI]

stamp duty applies.. cgt may but depends on accounting factors

MDH LEGAL
Melissa Dixon (08) 9344 1677

A CGT event will occur on a change of legal owner whether by gift, transfer or sale. Thus a stamp duty trigger. The market value of the property (land and building) is used for duty. A valuation is required when related parties are doing transfer. A transfer to a trust isn't exempt in Vic. Perhaps a land tax issue - maybe not. A full / partial transfer to a spouse may be duty exempt.

Accounting doesn't affect CGT. CGT rules aren't affected or concerned with how or even if accounting is done. Whether there is a capital gain or loss however may mean that no tax results. A reset cost base in the trust perhaps. eg : what type of trust ? who is trustee, trust liabilities etc.... Worth checking especially if you have a QS report - That could change your cost base and change your calcs.

I would obtain personal legal advice before acting. The trust may not offer the asset protection you seek unless you understand all the holes in this arrangement.