shifting equity

Viewing 4 posts - 1 through 4 (of 4 total)

DINN
Member
@dinn
Join Date: 2004
Post Count: 2
November 4, 2004 - 9:05 am
Hi is there a tax effective way that I can shift the Equity from my 2 rentals(a and b) and my owner occupier house(c) to pay off my 3rd rental(d).
My aim is to move into the 3rd rental(d) and negative gear and rent out a,b and c.
thanks and regards
Neil Dinnison
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
November 4, 2004 - 10:19 am
Only by transferring ownership and taking out new loans.
You will incur CGT and SD so ensure you understand the costs.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
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Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
DINN
Member
@dinn
Join Date: 2004
Post Count: 2
November 5, 2004 - 2:31 am
Thanks for you feedback Simon
It looks like the tax man is waiting in every direction. Transferring ownership, how is this achieved? for instance the houses are in mine and my girlfriends name.
thanks and regards
Neil Dinnison
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
November 5, 2004 - 4:13 am
You could sell your half share to your GF, she would increase the loan to pay you out. The money she received could be put into the mortgage of your new home. You maybe able to do it without stamp duty or CGT as there are various exemptions for transfer between spouses. (you may have to marry first?, btw, if it was me I think i would rather pay the tax!)
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au