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JV structure between 2 HDT

Discussion in 'Accounting, Tax & Legal' started by artgul, 8th Sep, 2005.

  1. artgul

    artgul Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    77
    Location:
    Sydney
    Hi all,

    Was wondering if someone can explain how to structure a JV agreement between 2 HDT (both with its own Corp trustee).

    Some of the questions I have:

    1/ Which name goes on the contract of sale?
    2/ At the end of the development project, how are the titles divided between both HDTs?. What're the implications on Stamp Duty and Capital gains?
    3/ Do we have to create a 3rd Company for the JV structure?

    Thanks,
    Artgul
     
  2. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    Location:
    Sydney
    Hi Artgul

    You have a couple of options

    1. Tenants in common - both trustee coys would go on title
    2. create a new company to act as nominee for the 2 entities

    You may be able to have a deed of partition which will save you on some stamp duty.

    CGT - dont know enough about the project to comment. Is it a profit making venture ?

    You should also consider GST implications

    Cheers
    NickM