Hello everyone,
My husband and I have just gone under contract on our first home…
My husband used his FHOG/payslips when he was about 22 to help his parents into a house and went on the title with his mum. A couple of years ago, he transferred his share of the house over to his dad. Now we’ve saved up enough of a deposit to get into our own place. I heard that putting 99% ownership in my name and 1% in his name might achieve a reduction in stamp duty payable? And will stamp duty from the transfer of ownership to his dad bite us in the bum at some stage?
Hope not…The 99/1% is useful if one of you is the high income earner in regards to tax benefits, you need to consult with your accountant about that. If your husband has already applied for FHOG once then he will not be entitled to it a second time. Stamp duty (transfer duty) is payable on transfer of title.
Thanks Tony,
My husband is the only income earner but we’re both on the title. This will be our PPOR. So does this cancel out the benefit of 99%/1% rule?I’ve just realised I should mean CGT not stamp duty. We didn’t pay any CGT when he transferred the property to his dad. We weren’t even living in Aussie at the time. He just signed what he was told to and mailed it back to their solicitor. Assuming they didn’t pay it on his behalf, should we have been tracked down by the ATO by now for over due CGT?
Found What I was looking for:
“If the person is buying the land with their partner, the exemption or concession is only available where both parties fulfil the eligibility criteria”.
-So it was looking good up until that point….
As for CGT, the property would’ve surely doubled in value in between the time husband purchased with his mum, to time of transfer to his dad for no financial gain.
We didn’t lodge a tax return for that year as we were in NZ for that entire financial year but maybe we should have?
Do you think that will catch up to us?Main residences are exempt from CGT (generally). If your husband didn't have any other main residence at the same time he may not have been liable.
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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