Hi Guys,
I realise the Love and Affection Clause has been discussed to some varying degree, but as everyone’s situation is different I have a question I’d like sorted out.My (new) wife and I have 2 IPs each. Mine are positively geared and I’m the higher income earner.
I’d like to ‘buy’ one of my wife’s properties, thereby increasing my gearing, while at the same time providing my wife with a payout for her one remaining property so she is almost debt free.I won’t have finance issues as I’ve already got equity built up in my IPs. From what I’ve read it seems we can avoid any Stamp Duty in Vic under the Love and Affection Clause.
However, as my wife’s properties are IPs, if she sells one to me will she be up for CGT ?
Or does the Love and Affection Clause exclude this too ?
(We currently rent so there is no PPoR).Cheers,
Theotheop72 wrote:From what I've read it seems we can avoid any Stamp Duty in Vic under the Love and Affection Clause. However, as my wife's properties are IPs, if she sells one to me will she be up for CGT ?The purpose of the transfer is generally either property settlement or splitting ownership of asset to your partner not moving the asset from one spouse to the other. Your wife would be up for CGT (and probably stamp duty as well).
Love and affection doesn't have much to do with it. Spouses can transfer properties to each other without stamp duty in some circumstances. This will vary from state to state, but I think Victoria is one of the most generous.
Of course, tax is a different matter and don't think there are any exceptions – unless you are breaking up – CGT would be assessed at market rates.
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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