Could there be any tax problems with my wife buying my investment property from me at market price?
She would take out an 80% bank loan and later claim the the interest as deductible lending costs to reduce tax payable on the rent money, which would now add to her accessible income. I would use the sales money to pay off some off my debts.
In Victoria there is no stamp duty payable on a transfer between spouses, which would reduce the cost of the sale. CGT would also be low since prices have not changed much since we bought it 18 months ago. We transferred the ownership to my name soon after we bought it.
This all sounds very straight forward and the conveyancer does not expect any issues from the land registry or bank perspectives.
I am assuming the property is solely in your name.
If so i don’t see an issue.
Cheers
Yours in Finance
0-40 properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Thanks for the confirmation.
The property is solely in my name and I have an audit trail to show that the funds originate from my personal wealth.
.. the funds that I originally used to purchase the property, that is.
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