if i make a profit of 20 grand off a block of vacant land within 12 months.if i put it under my mothers name who is a pensioner and does not pay tax.(well under the asset limit)do we have to pay tax.
At a guess, it will reduce her pension payment (which is asset-tested). And of course, when sold, she will be liable for CGT.
k
you are absolutely correct. i have a friend who was going to buy his mothers house (she’s on a pension) as she couldnt afford the repayments.
the agreement was he would own the house but she would live in it till she died. they went off the the pension mob, who told them that she would lose 60 dollars a fortnight, not sure why, something to do with assets.[cheers for the info [
]Yep. the gain would just be added to her income. ie on top of the pension. so she may pay tax, but this may be less than the tax that you would pay. But it will affect her pension. so be careful.
have you considered a discretionary trust. You may be able then, to give her a bit of the income and keep the rest yourself.
Terryw
Discover Home Loans
North Sydney
[email protected]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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