My wife and I have a property we both own 50 – 50. We are still together and so on. I earn a lot more than her and there is really no point for my wife to negative gear property where as I would benefit from it.
How can we do this without removing her from the property / mortgage at much cost at all? Can we both sign a peace of paper that I take full responsibility of the mortgage and expenses and therefore work it for my tax?
Depending which state your in – you can transfer names btw the spouse without having to pay stamp duty for the transfer; but certain conditions must be met as well; most of the time if you declare it’s for “tax” reason it be a big no no and your expect to pay stamp duty.
More info for NSW below ( not sure which state your from…)
http://www.lpma.nsw.gov.au/about_lpi/faqs/land_title/paying_stamp_duty_on_a_transfer
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Think more long term too. How long will the property be running at a loss? after it is postive geared then you would be paying much more tax in your name. Also CGT.
In NSW you cannot do a transfer like this without stamp duty – unless divorcing or dying.
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
QLD, but we have a mortgage on the property as well.
In QLD I don't think you can transfer between spouses without stamp duty – unless main residence.
But you could buy out your spouse's share. She would pay CGT and you stamp duty, but it would release funds which could be paid down on your non deductible debt and then you could borrow to buy her share and claim the interest and thereby increase tax deductions overall. Do the sums.
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
No hate to say you do pay duty in Qld.
We do a fair few of them for a couple of Accounting firms in Brissie and the numbers often work fairly well.
Obviously with interest rates falling there is less of a benefit but still all depends on how long you intend to keep the property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Guys – I don’t want to refinance at all. I just want the rights to be able to do it without the official transfer.
None of the above post is about “refinancing” at all…it’s about the transfer of name itself…In fact 95% of this sort of change over the client stays with the current lender.
You pay stamp duty to the land and title office for this change over. The only reason the bank was mentioned; was to answer your “reason” for changing over.
Eventually you will need to change the mortgage – but that won’t came at any cost; if anything less then $600 ( admin cost, registration etc.)
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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