Forum Replies Created
- Terryw wrote:Yes, if you are in VIC there are a lot of things you can do in transferring without stamp duty. In most other states it is more restricted. Your partner may also be able to borrow to buy your share and the money he pays you could be used to pay down the loan on your new home. He would be buying an investment property so the interest should be claimable too.
DOH but I’m the bloke in this marriage!
Seems like my cunning plan wasn’t so cunning after all. If I transfer it to both our names 50/50 then the negative gearing will also need to be 50/50 split (I think). We’re planning to start a family so negative gearing for her won’t be very effective for her for a few years. In the long run it should be worthwhile though since we’ll have to sell it one day. Thanks again Terryw.Lee
Terryw wrote:Here are my answers.
1. Heaps of issues here such as:
– Land Tax
– Loss of CGT exemption (but the original place could still get this)
– Tax issues – would ATO see it as a scheme to save tax and deny it?
– little asset protection, especially in the early years.
– stamp duty
– re apply for loans and exiting existing loansNeither of us are in particularly risky jobs and since we intent to stay in house 2 for a long time (buying for school zones) it probably makes more sense to avoid the trust.
Terryw wrote:2. CGT would be calculated on the value at the time you rent it. So sale price – value at time less costs = CG. Then apply 50% discount and then divide it between owners and add this figure to other income. Should be a max of 25% but much less probablyDivide by the owners is the problem since house 1 is under my name only.
What about this cunning plan :S
I bought the house 1 prior to marrying and in Victoria it seems to be possible to transfer house 1 to 50/50 ownership without duty. http://www.austlii.edu.au/au/legis/vic/consol_act/da200093/s43.html That way when we sell it down the track we get to divide it by the two owners.
Can I just get a private valuator or does it have to be specific ones? Can these guys also work out what I can depreciate?
Terryw wrote:3. Its ok, but you cannot claim any extra interest incurred. Reborrowing or redrawing = new loan and the interest will only be deductible if the funds borrowed are used for investment purposes.From what you and Luke86 have said it seems that changing house 1 from PPOR to IP and taking out from offset has no impact from a taxation PoV but redrawing does. So the magic is keeping two separate accounts: offset and loan! Geez, if only I knew from the start
Thanks for the help TerryW and Luke86, this is all so new to me so much to learn.
Seems like my cunning plan wasn’t so cunning after all. If I transfer it to both our names 50/50 then the negative gearing will also need to be 50/50 split (I think). We’re planning to start a family so negative gearing for her won’t be very effective for her for a few years. In the long run it should be worthwhile though since we’ll have to sell it one day. Thanks again Terryw.
