Hi, I just had a question about love and affection(gifting).
My wife owns a Investment Property, solely in her name.
She is currently at home looking after the kids and not working.
She is wanting to gift the property to me but for less than market value.
Is this legal in Victoria?Thanks
Gifting a property is just that – no value. Your downside is when you come to sell – you paid nothing so are up for 100% CGT if you have not used it as a PPOR. Your wife's downside is that for disposal purposes, it will be valued by the ATO as having transferred/sold at market value – so she will be up for CGT as well. Weigh up these costs before gifting the property, consider other alternatives eg moving it into a trust and you wife recieving the income etc.
Hi Daniel
I cant comment on the advantages or disadvantages im sure that both yourself and your wife have thought that through. In terms of legality she can transfer the property to your name for the consideration price of $1.00 irrespective of what the value is.
Make sure you involve a solicitor though before you go any further.All the best.
Legalities aside her CGT and Stamp Duty (if applicable) will be worked out on market value.
She should obtain a valuation on the property prior to signing the Transfer.
Richard Taylor | Australia's leading private lender
Some states allow transfers between spouses at special stamp duty rates. check with the OSR.
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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