My partner and I both own a house and we are sick of running two houses. If I move in with her (her name only on her house title) can I turn mine into an IP? Will I get the same benefits as if I purchased the house as an IP in the first place?
Any advice would be greatful.[blink]
Yes you can.
You will get the same benefits PLUS
You will get a CGT exemption for at least the period you occupied it as a home and maybe an additional 6 years depending on the nature of your relationship with your partner. If you are renting or boarding with her compared to cooccupying a home as a couple….. best to speak to an accountant.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Yes you would obtain an CGT reduction for the time you lived in the house. But you want to turn it into an IP, so at the present time CGT is not an issue.
Um, about the name on the titles being joint or in one or the other i dont know. You would have to investigate both the title on the PPOR(her place) and the IP(your place). To see what the best scenario would be. Would anyone be able to shed some light on this.Christopher.
Thanks for the advice.
I simply want to move into her place without changing any titles etc. ie She would own her place and I would own my place (the IP) so I assume it’s that straight forward as I would not own a PPOR. Now do I have to pay ‘rent’ for this to happen or the Tax Office not care? [eh]
Tax office only care about your income from the house and expenses. What you pay in rent (or not) is of no interest.
So just tenant it, keep records and do your tax.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Unfortunately couples can only claim one house as their main residence, not one each. I think even defactos are caught here – otherwise you could have claimed the CGT exemption too.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
