Hi,
I currently own an IP with the title under both me and my wife. We bought this property 17 yrs ago at $130,000 and I just received a valuation of $380,000 for it. I would like to buy out my wife's 50% share of the property, and I want to find out what would be the total cost for both of us for this transfer?
I understand I'll need to pay stamp duty on 50% of the 380k. What other costs are involved? and also how much capital gain tax my wife would need to pay?
Cheers
Say she transfers her share to you based on $380,000 val.
CGT will be approx:
$380,000 – $130,000 = $250,000
Less stamp duty and other costs when purchased and selling costs, say $10,000
= $240,000 gainOn this you get the 50% discount because it has been held more than 12 months = $120,000
But you are only transferring half, so her capital gain will be approx $60,000.
This $60,000 goes on to her other income and she pays tax at that rate.
Other cost = legals on sale and purchase, say $2,000.
Loan exit fees and entry fees
stamp dutyTerryw | 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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