Transfer of private property at S$1

[Solidgold]

Just wondering if I transfer my private property to my son at S$1...is that possible? What kind of stamp duties must I pay then? Of course, I know that the property must be fully paid up before you can do so. Are there any restrictions?

 

[Red_Bean_Bun]

Re: Transfer of private property at S$1

http://www.bmw-sg.com/forums/proper...existing-joint-name-property-single-name.html

 

[wobbles]

Re: Transfer of private property at S$1

Just wondering if I transfer my private property to my son at S$1...is that possible? What kind of stamp duties must I pay then? Of course, I know that the property must be fully paid up before you can do so. Are there any restrictions?

Err, cannot. Transfer must be at "market value", or "reasonable market value", and your son will have to pay stamp duty at the market value. I give you example:

1. Wife and I are joint tenants (50% each) share of property A and property B.
2. I'm interested in buying a new property C, but don't wanna be whacked the 3% - $5400 + ABSD of 10%, since this will be a 3rd property
3. I transfer my shares of property A to wife
4. She pays 50% stamp duty (3% - $5400 + 7% ABSD - because it's now her second property) on the market value of property A
5. I go buy property C, I pay 3% - $5400 on the price of property C.

Hope that helps - at least that's what my agent told me. Luan until blur, so I ended up buying NOTHING.

 

[Red_Bean_Bun]

Re: Transfer of private property at S$1

Can ask your agent if market value and valuation is not the same then which value to use ?

Err, cannot. Transfer must be at "market value", or "reasonable market value", and your son will have to pay stamp duty at the market value. I give you example:

1. Wife and I are joint tenants (50% each) share of property A and property B.
2. I'm interested in buying a new property C, but don't wanna be whacked the 3% - $5400 + ABSD of 10%, since this will be a 3rd property
3. I transfer my shares of property A to wife
4. She pays 50% stamp duty (3% - $5400 + 7% ABSD - because it's now her second property) on the market value of property A
5. I go buy property C, I pay 3% - $5400 on the price of property C.

Hope that helps - at least that's what my agent told me. Luan until blur, so I ended up buying NOTHING.

 

[Darth Vader]

Re: Transfer of private property at S$1

3% stamp duty on market valuation or selling price whichever is higher.
if your son have more than one property. stamp duty is 10%.
if you die and will your property to your son, than no stamp duty, free transfer cause dead folks got preference treatment.

 

[Baby1M]

Re: Transfer of private property at S$1

Just wondering if I transfer my private property to my son at S$1...is that possible? What kind of stamp duties must I pay then? Of course, I know that the property must be fully paid up before you can do so. Are there any restrictions?

I believe that is only possible if the transfer is from a private owner to the state.
Anyway there is a Law which enable the state to do so while the $1 is a token fee.

 

[wobbles]

Re: Transfer of private property at S$1

Can ask your agent if market value and valuation is not the same then which value to use ?

Fair market value - you can't say a $300 million bungalow is sold at a $1 token to a brudder. That's akin of cheating IRAS of the stamp duty tax: big no no.

 

[brosiss]

Re: Transfer of private property at S$1

Actually, a sane father/mother transferred FH /private property to sane son or daughter is nature law. Why must pay IRAS tax?

The rest maybe pay iras tax to prevent fraud.

 

[matrock]

Re: Transfer of private property at S$1

Fair market value - you can't say a $300 million bungalow is sold at a $1 token to a brudder. That's akin of cheating IRAS of the stamp duty tax: big no no.

Yea, and also to prevent pple from doing property liquidation before declaring bankrupt.

 

[Hublot]

Re: Transfer of private property at S$1

Can try giving him as a gift instead but next 5 years don't sell

 

[Red_Bean_Bun]

Re: Transfer of private property at S$1

the bank say 300m but your neighbor sold at 320m........so iras say which one is the fmv ?

Fair market value - you can't say a $300 million bungalow is sold at a $1 token to a brudder. That's akin of cheating IRAS of the stamp duty tax: big no no.

 

[Solidgold]

Re: Transfer of private property at S$1

Can try giving him as a gift instead but next 5 years don't sell

Well...that's seems to be a good idea. Is there a different transfer process if it is a gift? And stamp duties will still apply right based on market value. If the only restriction is that he cannot sell the property in 5 years and if there is no real plan to sell...then it's ok.

Thks for all the very constructive response. I admit that I did not do thorough search before posting the question...my sincere apologies.

 

[seanskye]

Re: Transfer of private property at S$1

Well...that's seems to be a good idea. Is there a different transfer process if it is a gift? And stamp duties will still apply right based on market value. If the only restriction is that he cannot sell the property in 5 years and if there is no real plan to sell...then it's ok.

Thks for all the very constructive response. I admit that I did not do thorough search before posting the question...my sincere apologies.

This is not professional advice so pls do not quote me and do carry out your own research. In general, a gift of property between two living persons is considered as a sale of property, even if no consideration was applied. Hence, activities involving the conveyancing of properties intervivo will attract stamp duties. But not sure about now with new components such as ABSD and SSD. Regardless, please consult a proper tax specialist or refer to iras website for the updated rules and regulations.

Link to Iras below:

IRAS: Transfer by Way of Gift

Cheers.

 

[seanskye]

Re: Transfer of private property at S$1

the bank say 300m but your neighbor sold at 320m........so iras say which one is the fmv ?

IRAS uses a few methods to calculate the FMV. It really depends, and may not necessarily be the highest value.

 

[andies]

Re: Transfer of private property at S$1

Basically change name means stamp duty on the valuation price ? Doesn't make sense to put joint owners with the stupid high stamp duties to penalise double property owners ..sigh