Hi, We have an investment property that was in both myself and my wifes name on the title. I have now changed that by removing my wifes name off the title under natural love and affection. Upon doing this i have been told that i will be up for Capital Gains Tax. Is this the case. Our property is located in Victoria and has probably increased in value a little from when we refinanced the loan on the house to transform it into an investment property. Thanks DWG.
Hi DWG
Hate to say your advice is correct.
There may a few things you can offset against the Cost Base but these are limited.
I would try and get a couple of letterhead valuations stating the estimated valuation as close to your original purchase price as possible.
Richard Taylor | Australia's leading private lender
Unless you used the for hatred and loathing clause (divorce) I think you are up for CGT – but talk to your accountant.
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
Thanks Guys. Spoke to my accountant and he said he`ll look it up.The property was bought in 2001 for $170k. Refinanced in 2008 and was valued at $345k by the lending institution. Estimated value now would be around $360k. If thats the case would the CGT calculated off the 2001 purchas price or the 2008 refinance figure. Would there be any chance of halting procedures on the name change seeing i did it today (Friday).Cheers DWG.
No wont be able to stop the name change going through if you have signed the Transfers and thee have been lodged.
On the basis that it was an investment property when you first purchased it in 2001 then the purchase of $170K will be used.
If using the concessionary rate as you have owned it over 365 days it isnt going to a be cheap exercise.Richard Taylor | Australia's leading private lender
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