All Topics / Help Needed! / Title Transfer Implications

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  • Profile photo of se7ense7en
    Participant
    @se7en
    Join Date: 2011
    Post Count: 54
    November 12, 2014 - 3:28 pm

    Hi all,

    It’s been a while since I’ve made a post here but recently a close friend who owns a property jointly with their partner has gone through a separation which has brought about a few questions. It has been decided that my friend will take full ownership of the property and the title will be in her name only. I just wanted to understand how this transfer of title works? Does my friends partner need to pay capital gains tax on the half of the house he is transferring? How is the payout calculated? Could any capital gains saving be forwarded on (in part) to my friend in the way of a discounted payout?

    Any help on this would be appreciated

    Thank

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 12, 2014 - 8:09 pm

    Yes, capital gains tax and stamp duty.

    However, if it is a transfer related to a breakdown of a marriage/defacto it can be exempt from both. Your friend will inherit any CG with the property so this will be extra tax in the future and should be taken into account.

    First get the finance sorted, then seek legal advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of se7ense7en
    Participant
    @se7en
    Join Date: 2011
    Post Count: 54
    December 3, 2014 - 10:37 pm

    Thanks for the response Terry, this is a huge help – had one more question for you if you get a chance.. the title transfer would be due to a marriage breakup so it seems the exemption of CG and stamps would apply however to qualify for this exception does the title transfer need to go into my friends name or can it go into someone elses? My friend has seen a broker since my last post and will not be able to afford the repayments if the entire property is in her name. I could potentially buyout the ex-partner and take on half the repayments, however if his half of the title was transferred to my name would the tax exemptions still apply?

    Thank in advance

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 3, 2014 - 11:03 pm

    Not unless it was a 3 way marriage.

    • This reply was modified 9 years, 11 months ago by Profile photo of Terryw Terryw.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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