Hello,
I just have a question about my investment property.
About 7 years ago, I bought an investment property under my own name. It's in Victoria.
I'm planning to sell this (maybe) in 3-4 years time.
If I change the title of this property from "my own name" to "my own name + my partner's name"), will it be incurred in another extra stamp duty.
Me & my partner are married, with no kids.
Moreover, since I plan to sell this in 3-4 years time. What about the tax implication when we sell it (if the title is both under my name & my partner's name)?
Is the capital gain will be shared to "both me & my partner" or "just me" or …. (considering the first 7 years, the title is only my own name)?
If someone can help this, that would be much appreciated.
Thank you.
what state is this in?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi and welcome aboard.
The state the property is in will determine whether duty will be triggered again.
In any case, this is a scenario that you'd want to discuss with your accountant – let them know of your intention to sell the property within the next few years as well.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
What are you trying to achieve by putting it in both names?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
The property is in Victoria.
JacM wrote:What are you trying to achieve by putting it in both names?My honest answer will be to reduce the tax from capital gain when we sell it.
If it is in victoria you can transfer to a spouse without stamp duty. This will be a cgt event though. If you are looking to deduct interest then the transferee will need to buy if from you at full market value and borrow to do so. This can be done without or just nominal stamp duty in vic.
Seek legal advice from a solicitor before attempting this.
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
Terryw wrote:If it is in victoria you can transfer to a spouse without stamp duty. This will be a cgt event though. If you are looking to deduct interest then the transferee will need to buy if from you at full market value and borrow to do so. This can be done without or just nominal stamp duty in vic. Seek legal advice from a solicitor before attempting this.Thanks Terryw.
My idea is to split the cgt to me & my partner.
Because in my opinion, if the property under my own name, it means they will the capital gain from my income only
Having the property under 2 names means the capital gain tax are shared (me 50% and my partner 50%). We lodged tax return individually.
Is this correct?
Thanks.
cutegirl wrote:Terryw wrote:If it is in victoria you can transfer to a spouse without stamp duty. This will be a cgt event though. If you are looking to deduct interest then the transferee will need to buy if from you at full market value and borrow to do so. This can be done without or just nominal stamp duty in vic. Seek legal advice from a solicitor before attempting this.Thanks Terryw.
My idea is to split the cgt to me & my partner.
Because in my opinion, if the property under my own name, it means they will the capital gain from my income only
Having the property under 2 names means the capital gain tax are shared (me 50% and my partner 50%). We lodged tax return individually.
Is this correct?
Thanks.
Your will pay cgt on transfer to your spouse unless an exemption applies and then cgt from then on in accordance with ownership %
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
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