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Off Market Transfers

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nevieboy

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Hi everyone,
Need some help please.
I am in the process of transfering shares from my name into my partners name.
I'm with etrade.
What price should I quote for the transfer?
History of share I'm transfering is as follows:
My partner hade a spare 20k, I bought 20k worth of CBA shares in my name.
Bought 480 shares at $41.80 on the 30/11/05.
So for the last 3 years all the dividends where reinvested.
On the 05/04/06 a dividend was paid and reinvested of $451.20. It came at 10 shares. So now we have 490 shares at an average price of $41.40.
So for the last 3 years it has all been reinvested.
At the moment those original 480 shares have increased to 563 shares.
The original price of $41.80ea is now $36.02ea.
I rang etrade in regards of this matter and they just confused the hell out of me. They are posting out the appropriate forms in the next few days.
So my dilemma is what price should I transfer the shares at ?
Hope it all makes sense. I know what I want to say but it's hard to write it all down.
Thanks.
Waiting in anticipation.
 
For tax purposes, the ATO will require you to use the market value of the shares on the transfer date specified on the off-market transfer form.

This does not constitute legal or tax advice, DYOR.
 
Sunburnt Land said:
For tax purposes, the ATO will require you to use the market value of the shares on the transfer date specified on the off-market transfer form.

This does not constitute legal or tax advice, DYOR.
Click to expand...

What date should I put on the transfer form?
Etrade confused me more than I was before. I think they said I could specify any price in the last 90 days.
Should I specify the date when the shares where $36.02 or $41.80?
 
nevieboy said:
What date should I put on the transfer form?
Etrade confused me more than I was before. I think they said I could specify any price in the last 90 days.
Should I specify the date when the shares where $36.02 or $42.25?
Click to expand...



Sunburnt is correct.

also,the date you put on the form is the date you sign it.

you can use the lowest price for the day!

as for the 90 day rule, apparently it is now outmoded, it is a hangover from the old days of state govt stamp duty.

How do i know?... I went thru the same process on a large amount of shares txed to my SMSF, sought various advices, much confusion exists, especially at the ATO.

So to reiterate...the date of tfer is the date you sign the form, the price is the price on that date for ALL the shares.

dont muck up the form, as the registry will send it back if there is the slightest mistake.

ring the Registry..ie Computershare or Link, and they will help you if you are confused.

hope that is clear.

by the way, none of that is advice, could be incorrect, etc
 
Thanks guys.
By transfering shares do I have to pay CGT?
I don't think so, but I might be wrong.
But will my partner have to pay the 50% rule if she sells them before the 12 months is up? And the 25% rule after the 12 months?
Does the 12 months begin on the date I stipulate on the transfer form? Or the date she receives the transfer of shares?
Thanks again.
 
nevieboy said:
Thanks guys.
By transfering shares do I have to pay CGT?
I don't think so, but I might be wrong.
But will my partner have to pay the 50% rule if she sells them before the 12 months is up? And the 25% rule after the 12 months?
Does the 12 months begin on the date I stipulate on the transfer form? Or the date she receives the transfer of shares?
Thanks again.
Click to expand...

so far as i know you will have to pay CGT.

your wife will have to pay CGT if she sells them.

to clarify the exact details, you will need to speak to an accountant or the ATO.

it is important to get correct advice BEFORE u act.

it is prohibited for ASF members to give financial advice, only opinions can be offered, which may not be correct
 
Just had another thought.
Etrade are going to charge $50.00 per transfer.
What about if I sell these shares the normal way through etrade at their brokerage price of $32.95, and then withdraw that amount and pass it on to the mrs? Or has etrade have the facility to transfer funds from my account to her account?
CBA shares closed today at $32.95ea. So if I sold today I would have had made a loss of $3.07 per share. Therefore no CGT and I could use this loss in the future when I make gains on my other shares. And then the mrs will get her 18.5k, and if she wanted she could buy CBA at a cheaper price and do with them with what she wants. (Or buy something else).
What do we all think?
I think this would be an easier way of doing things
 
nevieboy said:
Just had another thought.
Etrade are going to charge $50.00 per transfer.
What about if I sell these shares the normal way through etrade at their brokerage price of $32.95, and then withdraw that amount and pass it on to the mrs? Or has etrade have the facility to transfer funds from my account to her account?
CBA shares closed today at $32.95ea. So if I sold today I would have had made a loss of $3.07 per share. Therefore no CGT and I could use this loss in the future when I make gains on my other shares. And then the mrs will get her 18.5k, and if she wanted she could buy CBA at a cheaper price and do with them with what she wants. (Or buy something else).
What do we all think?
I think this would be an easier way of doing things
Click to expand...

Thats the way to go, I've done it with dogs between my margin loan, short term portfolio, and my super fund , long term protfolio.

gg
 
Hi

I've done off market transfers and there's nothing technical about it, on the date I filled out the form I used the price the stock was trading on the day as a base for the consideration, I am not sure what date range you can use, best check it out before pulling a shifty.

If you just want to sell your stocks and transfer the cash to your partner, on market is the quickest and easiest then you can just do a pay anyone cash transfer.:)
 
cutz said:
Hi

I've done off market transfers and there's nothing technical about it, on the date I filled out the form I used the price the stock was trading on the day as a base for the consideration, I am not sure what date range you can use, best check it out before pulling a shifty.

If you just want to sell your stocks and transfer the cash to your partner, on market is the quickest and easiest then you can just do a pay anyone cash transfer.:)
Click to expand...

Yeah I think I'll sell on market and take the easy way out. I don't think I'm pulling a shifty, it's all above board (I hope).
What do you mean by "then you can just do a pay anyone cash transfer"?
By the way cool Avatar you have.
 
Nevieboy,

Some stuff for you to check out...

1) If you do decide to play around with your transfer date be aware that it will be an accounting nightmare were you to transfer the shares at a date prior to the last dividend. The franking credits would then need to be reassigned to your wife and would create headaches for your accountant.

2) Wash Sales (Not applicable but worthwhile knowing if selling on market)
http://www.ato.gov.au/corporate/content.asp?doc=/content/00110544.htm

3) Transfer forms (and almost every form you will ever need) can be downloaded from Securities Registrars Association http://www.sraa.com.au/forms/form23.pdf

Hey cool avatar :D
 
Cutz & Sir O,
Thanks for your replies and concerns.
What I'll think I'll do is sell CBA when it reaches around $36.02 and forward the funds over to the mrs. account. Either way I'll take a small gain or a small loss.
That's the easiest way (I think).

How do you two guys like your Martinis?
 
There used to be a free way to performs Transfers....not sure if it still works. A lot of paper work though

First call up the share registires and see if they charge any fees for transfers. If not then this will work

1. Transfer all shares from broker sponsored to issuer sponsored
2. When issuer sponsored, there will most likely be different issuers for every share you have, complete a transfer with them from one name to the other
3. Once the new name is on the shares and with the issuer, comvert them back to the broker under the new name

Good times, and if you have a lot of shares you save $50+ per lot
 
Hi everyone, thought I would ask my question on this thread rather than starting a new one.

I understand the implications of an off market transfer however I have a unique case.

My problem is that I have a stock that has been suspended and I doubt that it will ever trade again. There is a 99% chance it will go bust. As I can't sell it on market I was hoping to do an off market transfer to my wife so I can put it in the dog box once and for all and claim a tax loss. The last time it traded was 2 Months ago for the price of .009c.

The ATO link here: http://www.ato.gov.au/individuals/content.asp?doc=/content/65605.htm says that I must use the closing price on the date of the transfer as my sale price but it is suspended. The link isn't clear on what I should do in this case. What do you people think should be my course of action? Thanks.
 
Thanks cutz, my company is on their list so I can get rid of them for $80, cheers.
 
Off market transfer

I have a friend who is owed money by a client and is willing to take a parcel of ASX shares as part payment.

Can anyone tell me what he has to do to facilitate an off market transfer of the shares from his client to him.
 

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