If anyone can help me out here I’d be grateful. I'm over 60 and am looking at withdrawing my super and using it to purchase an existing property. I currently have a house and an investment property that’s under my and my wife’s name. To save on land tax and CGT i was thinking of putting the new property under my sons name as his income is less than $30,000 and doesn’t own a property where as mine + my wife’s is around double. Will I incur any other tax if I undertake this option?
We are looking at using the house as a holiday home with my son living there a few days during the week. Am i better of doing this or is there a more feasible way to minimise tax. Also if i put the property under my sons name and nominate myself + my wife on the contract will this affect the CGT even thought its his principal place of residence?
thanks
Hi
You can now purchase property in your Superfund thanks to new Instalment Warrants which have now been ok'd by the ATO (as long as they are set up properly!).
If you have a suitable amount already in Super you can buy property with these warrants and gain the advantage of paying no tax in retirement and the interest rates on loans for these properties are very competitive and in most cases no personal quarantees are required.
If you want more info please pm me as I can give you loads more!
Regards,
Alysha
Hi Pkal
By putting it in your son's name, you might avoid taxes altogether if it is his main residence. He may also get the FHOG and stamp duty exemption. This may help your son in his own investing – especially if you let him mortgage it!
Not sure what you mean by saying the property is in your son's name but nominating yourself on the contract. Ownership is determined by whose name is on title. If he nominates you and the title is in your name, then he is out of the equation and you are back to square one.
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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