Hi Guys,
My Girlfriend and I recently purchased a 600sqm property with the view of knocking the existing house down and building two 25 square townhouses side-by-side (sell one off and live in one).
We had some issues with the loan structure, whereby we originally had my parents on title also (4 in total) to save on the tax consequences down the track but our mortgage broker stuffed this up (long story) and thus, only my girlfriend and I are now on title.The planning permits have been approved by council and the next step is now to sub divide the block into two.
My question is that, as the title is under both our names, can we simply transfer my girlfriends name onto the subdivided block B and for me to stay on title of block A. the purpose of this is to stay that both are out primary place of residence and thus no CGT upon the sale of these properties.
the other alternative is for me to sell this property into my parents name so they can stay on title (the Con of this is that this will attract unnecessary stamp duty. the pro is that my parents stay on title and that the stamp duty paid will be less than the CGT upon the sale)or would you have any better ideas to reduce the tax on the sale of these two properties?
your input will be much appreciated!
further info: the property is located in melbourne
Best tip I can think of is next time hit your accountant up for a trust structure before you purchase if this is going to be a regular thing for you guys. I know that does not help you now but maybe next time. The benefit is the asset protection with the additional benefit of having more tax options it is an extremely flexible and personally unique arrangement. Don't focus on the properties you are selling think of it as a whole of finance approach for your circumstances and will take into account your job, investment activities, businesses etc and your accountant should understand this and look after you. If s/he does not look after you or know what you are talking about look for a new one as there are heaps out there. PM me if you want someone that can help you out (they are in NSW and QLD though). Happy investing.
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