Hi everyone.
I currently own an apartment fully in VIC with no mortgage. It is under my name only.
My wife and I have purhcased another property (our future PPOR) and settlement will be in 3months time.
I have spoken to some accountants and they have suggested the following steps in order to
fully maximise our situation:1. For me to 'sell' the apartment to my wife for a nominated amount (say $400k)
2. My wife takes a loan of $400k and rents out the apartment (thus making the interest tax deductible)
3. I take the 400k and purchase the future property (PPOR)I need to clarify whether 'selling' the apartment to my spouse would incur any stamp duty, and whether this is a feasible
option. The accountants also said that only some lawyers will be able to transact this. Any solicitors willing to transact this?Thanks and Regards
AdrianI think it would incur stamp duty unless you are getting a divorce and have court orders relating to the division of property, but may be possible in some states to transfer between spouses without stamp duty, so best to check with the OSR.
It may still be worth doing as you will save a lot in tax. Do the figures and see how long it will take to make the costs back in tax savings.
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
Adrian
No if's or buts it will incur stamp duty.
After you have worked out the figures you need to consider the marginal tax rate of your wife.
If she is on a lower tax rate than you consider selling it into a Trust structure with you as a Unit holder / Trustee.Richard Taylor | Australia's leading private lender
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