Terryw wrote:

propman1 wrote:

Hi Terry,

Thanks for your reply.
1. The property is in Queensland, so it will be under Qld stamp duty rules.
2. The property is worth around $800k. If she gifts me $800k to buy the property, what are the tax implications for the cash loan?
3. There are no social security issues. She is not entitled to the pension or anything.
4. How do I establish no undue influence. If she goes to her own solicitor (on her own, with no one else with her) is that satisfactory?
5. The tax issues of me renting it later is not an issue for me.

6. “It might be better for you to buy off her at full market value, borrowing to do so, and she can gift you the cash.” Why do you say that??

1. ok
2. loan? loans generally attract interest. Interest received is income. If it is a gift then it is not a loan. No taxes on gifts.
3. ok
4. that is a start, Many other legal issues to consider
5. it could be an issue many years from now. circumstances chage
6. asset protection for 1 thing

You really should get some legal advice as there is a lot you don’t know you don’t know.
6

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Hello Terry,

Thanks for your detailed reply.
Re your answer above, I just need a bit more clarification:

2. Sorry. I made an error referring to it as a “cash loan”. It should have read as “cash gift”

4. What other legal issues are you referring to?

5. I assume that you are thinking along the lines of the tax on the income from the apartment. Am I correct?

6. “Asset protection” from whom?

I am considering getting some more legal advice on this matter. This thread was for the purpose of learning enough of the basics so as not to look too foolish with my initial meetings/discussions with a solicitor.

I am actually looking for a solicitor to establish a family trust as well. After looking at this Forum over the last couple of days, I have been very impressed with your replies (not just in this thread , but in many other threads) so expect a call from me later in the week in this regard.

• This reply was modified 9 years, 4 months ago by  propman1.

Hi Terry,

Thanks for your reply.
1. The property is in Queensland, so it will be under Qld stamp duty rules.
2. The property is worth around $800k. If she gifts me $800k to buy the property, what are the tax implications for the cash loan?
3. There are no social security issues. She is not entitled to the pension or anything.
4. How do I establish no undue influence. If she goes to her own solicitor (on her own, with no one else with her) is that satisfactory?
5. The tax issues of me renting it later is not an issue for me.

6. “It might be better for you to buy off her at full market value, borrowing to do so, and she can gift you the cash.” Why do you say that??

• This reply was modified 9 years, 4 months ago by  propman1.