Hi again, hoping for the forums expertise on a move to rent our property. As unexperienced in this field need advise…We are looking to transfer our title from joint names to majority ownership by one person or outright by one of the parties in our relationship in order to take advantages of tax benefits of intertest offset in income tax. Office of inland revenue? advises that any change in the title of the loan will incur stamp duty – is there any way that we can do this to utilise this cost saving (tax offet) without incurring stamp duty ?
Many thanks in advance…best rgds.
Abandpops
Varies from state to state – which state is the property?
Hi Derek, apologies, property in Brisbane QLD. Thanks..
Exemptions usually only exist for adding spouse or removal (divorce) not for asset protection purposes but check the OSR website.
Not in QLD unless relationship breakdown.
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
also you would need to get the loans changed..
and if the ATO looked at it (almost never) then you could have an issue with the old question of intention .. when purchased
safe way is the divorce….
just quietly slip the paperwork in among lots of other docs while she is watching her favourite TV show
and I have seen it done, wound up sleeping in the factory for a while till she calmed down..
gmh454 wrote:also you would need to get the loans changed..and if the ATO looked at it (almost never) then you could have an issue with the old question of intention .. when purchased
safe way is the divorce….
just quietly slip the paperwork in among lots of other docs while she is watching her favourite TV show
and I have seen it done, wound up sleeping in the factory for a while till she calmed down..
I wonder how many men are brave enough to try that
Yes as been said do a fair bit of Spousal Transfer work and not as easy it sounds.
Firstly need to do the Transfer and the new loan at the same time and be suprised how many lenders can't wrap their heads around it.
Also sorry to say Stamp Duty is payable but will only be on the balance of the Transfer value and not on the full new consideration.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
gmh454 wrote:also you would need to get the loans changed..and if the ATO looked at it (almost never) then you could have an issue with the old question of intention .. when purchased
safe way is the divorce….
just quietly slip the paperwork in among lots of other docs while she is watching her favourite TV show
and I have seen it done, wound up sleeping in the factory for a while till she calmed down..
Not sure what you mean about intention?
When one spouse buys out the share of the other spouse the intention doesn't really matter. It is a purchase of property. If money is borrowed to buy this property and the property is available for rent then generally the interest will be deductible as the purpose of the borrowing is to buy an income producing asset. The same principles apply for the original part of the property the spouse may already own.
The ATO acknowledge that the interest may be deductible – see th ATO ID i cited above for proof.
But don't try this at home without legal advice as there are many issues involved.
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
Qlds007 wrote:Yes as been said do a fair bit of Spousal Transfer work and not as easy it sounds.Firstly need to do the Transfer and the new loan at the same time and be suprised how many lenders can't wrap their heads around it.
Also sorry to say Stamp Duty is payable but will only be on the balance of the Transfer value and not on the full new consideration.
Cheers
Yours in Finance
Richard, stamp duty would apply in most states, But in Victoria it seems one spouse can buy out the other spouse for only nominal stamp duty and this is the case even if it is an investment property.
Should a purchaser many a vendor just to save stamp duty?
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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