Hi!
Would LOVE your thoughts / ideas / perspectives on the following situation….
Part 1
My former partner and I owned an investment property for 2 years in Canberra. We’ve broken up and he wants to sell it. I think it is worth holding onto and want to buy his share. Wondering if you could help me with a couple of questions:Do I have to pay stamp duty again? Is there anyway to avoid this (with a sub-contract or agreement with him?)
If I think I might live in it – am I still able to apply for the first home owners grant (assuming there is a reduction in the grant to reflect tax benefits already gained.)
Part 2
I’ve been offered a volunteer position for 12 months in Asia which I intend to take. The property is negatively geared and I plan to use my savings to cover the gap between rental income and mortgage repayments. Just wondering:Is there any way the ‘loss’ can be carried over to the following year (when I will again haev an income to set it against).
Thank you VERY much for any support. I’m 26 years old and feeling a little concerned / confused… [blink]
Cheers
KariHi there
Cant answer all your questions, however I was wondering why did you buy the property? What was the purpose behind it?
I ask this because Im wondering if the property is achieving your purpose for having it?
Once you know the answer to that, it may be easier to make the necessary decisions, whether to sell or not?All the best
Hope this helpsKari
I can answer your question about stamp duty on buying out your former partner’s share.
The Stamp Duties Act makes provision for the waiving of stamp duty on final property settlements. In NSW it is the NSW Stamp Duties Act and it is the Property (Relationships) Act. I don’t know what it is in ACT, but there will be a similar provision. See your solicitor. For the price of the deed you will get a) your stamp duty waived and b) a guarantee that there will be no further financial claims arising out of the relationship.
Jolie, NSWKari
I think if you have a loss, it will just carry forward to the next year if you have no other icome. However, if you are going to be away for a while, you may cease to be a resident for tax purposes, so this may have some implications.
Terryw
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hi kariadams
see an accountant as it depends on alot of things.
structure property was bought in.
value of the others share.
value of the property currently.
how you are to be paid and how the money is to come back to Australia.
cgt and stamp duty issues.
you may find that once these issues are addressed holding while you are away will be a better option for both of you and the other party if as you say this was an investment they should see it as an investment and little things like feelings don’t come into investments.here to help
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