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  • Avatar of denise1denise1
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    @denise1
    Post count: 5

    Hi guys,

    I'm hoping someone can give me some info.  In October 2006 we purchased an investment property in both names.  We now need to remove me from the equation due to changes in tax rulings.  Can anyone let me know if we have to pay stamp duty on this.  I think that it is unfair that I have to pay again (having payed the first time).

    I would appreciate any help

    Cheers
    D

    Avatar of WJ HookerWJ Hooker
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    @WJ-Hooker
    Post count: 270

    denise1,
                   My theory is you don't have to pay ( or very little ) if it was your PPOR.
    But, since its an IP you need to pay 50% of normal costs. Maybe I'm wrong? It maybe different for different states.

    Avatar of LinarLinar
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    @Linar
    Post count: 567

    I think that you have to pay stamp duty.  I have read comments about transfers between spouses being stamp duty free but my understanding is that unless there is a property settlement as a result of a marriage breakup there must be stamp duty and potentially CGT paid on any name transfers.

    Cheers

    K

    Avatar of Richard TaylorRichard Taylor
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    @Qlds007
    Post count: 11,190

    Hi D

    Yes Stamp Duty wil be payable on the portion being purchased and potentialy Capital Gains Tax on the increased value.

    Just out of curiousity what were the Tax changes which is forcing your hand here ?

    Richard Taylor | Taylored Financial Solutions I Mortgage Broker
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    Avatar of TerrywTerryw
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    @Terryw
    Post count: 14,560

    Probably the salary sacrifice method?

    I think most states have exemptions for stamp duty where the property is the main residence and is transferred between spouses – but not for investments properties (unless due to a family court order – consider the tax benefits of divorce?)

    Terryw | The Loan Experts Pty Ltd | FinLaw Pty Ltd
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    Avatar of denise1denise1
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    @denise1
    Post count: 5

    Thanks guys,

    It was the otherwise deductible rule that we were using.  In the last budget the Federal Govt put a stop to it.  I'm wondering if there is any way that I can sign my portion to my husband.  I really don't want to have to pay the stamp duty again, it kind of wipes out the benefits of owning the property. 

    Thanks
    D

    Avatar of Dan42Dan42
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    @Dan42
    Post count: 620

    Unfortunately you are going to have to pay, one way or another. What you have to work out is if the tax savings into the future outweigh the payment of capital gains tax and stamp duty now. You can't have your cake and eat it too.

    Avatar of Badgers_R_UsBadgers_R_Us
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    @Badgers_R_Us
    Post count: 99
    Dan42 wrote:
    You can't have your cake and eat it too.

    In this case the Tax Man can.

    Avatar of denise1denise1
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    @denise1
    Post count: 5

    Thanks guys, I think we will just have to cope it sweet and reap the benefits later.  I agree with the previous comment that the Tax man always wins. 

    Cheers
    D

    Avatar of god_of_moneygod_of_money
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    Post count: 971

    Hi Terry,

    I thought that transferring PPOR to the spouse will still incur stamp duty???
    Correct me if I m wrong

    Avatar of TerrywTerryw
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    @Terryw
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    Hi god

    Just reading the Duties Act 1997 (NSW) while waiting for the RBA announcement.
    http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/

    I cannot find anything regarding transfer between spouses being exempt. But I recall reading something recently, maybe it was QLD.

    Found some other interesting exemptions

    • s96 Transfer by corporation of principal place of residence to principal shareholder or spouse
    • s274Transfer of certain business property between family members (eg primary production land)
    • s284B Restructuring of unit trust for land tax purposes
    • s65(11) Financial agreements No duty is chargeable under this Chapter on a financial agreement made under section 90B, 90C or 90D of the Family Law Act 1975 of the Commonwealth.

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    Avatar of Richard TaylorRichard Taylor
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    @Qlds007
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    Terry

    No nothing is exempt in Qld i assure you lol.

    Richard Taylor | Taylored Financial Solutions I Mortgage Broker
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    Avatar of fishngymfishngym
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    Post count: 49

    If in QLD, have a read of s151 of the Duties Act. It should help you out.

    Avatar of TerrywTerryw
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    @Terryw
    Post count: 14,560
    fishngym wrote:

    If in QLD, have a read of s151 of the Duties Act. It should help you out.

    Thanks Fishngym

    DUTIES ACT 2001 – SECT 151

    151 Exemption–particular residences

    Transfer duty is not imposed on a dutiable transaction that is the transfer, or agreement for the transfer, by way of gift, from 1 party to a subsisting marriage or de facto relationship to the other party to the marriage or de facto relationship, of an interest in residential land if–

    (a) after the transfer, the residential land will be owned by the parties as joint tenants or tenants in common in equal shares; and

    (b) the residence will be the principal residence of the parties.

    Terryw | The Loan Experts Pty Ltd | FinLaw Pty Ltd
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    Avatar of TerrywTerryw
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    @Terryw
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    Terryw wrote:
    Hi god

    Just reading the Duties Act 1997 (NSW) while waiting for the RBA announcement.
    http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/

    I cannot find anything regarding transfer between spouses being exempt. But I recall reading something recently, maybe it was QLD.

    Found some other interesting exemptions

    • s96 Transfer by corporation of principal place of residence to principal shareholder or spouse
    • s274Transfer of certain business property between family members (eg primary production land)
    • s284B Restructuring of unit trust for land tax purposes
    • s65(11) Financial agreements No duty is chargeable under this Chapter on a financial agreement made under section 90B, 90C or 90D of the Family Law Act 1975 of the Commonwealth.

    Found it,

    DUTIES ACT 1997 (NSW) – SECT 67

    Exemptions-transfers to married couples and de facto partners

    67 Exemptions-transfers to married couples and de facto partners


    (1) No duty is chargeable under this Chapter on a transfer, or an agreement for the sale or transfer, of dutiable property if it is proved to the satisfaction of the Chief Commissioner that:
    (a) as a result of the transfer or agreement, the property is or will be held by a married couple or de facto partners as joint tenants or as tenants in common in equal shares, and

    (b) the dutiable property:

    (i) is land that has erected on it a private dwelling house and was solely or principally used, as at the date of transfer, as the principal place of residence of the married couple or de facto partners, or

    (ii) is vacant land and the married couple or de facto partners intend to use it as the site of a private dwelling house to be solely or principally used as their principal place of residence, or

    (iii) is shares that confer an entitlement to exclusive possession of a company title dwelling that was solely or principally used, as at the date of transfer, as the principal place of residence of the married couple or de facto partners, and

    (c) both the transferor and the transferee are the married couple or one of them or the de facto partners or one of them and no other person is a party to the transfer, and

    (d) in the case of de facto partners, the parties to the relationship have lived in the relationship for at least the 2 years before the date of the transfer.

    (1A) For the purposes of subsection (1) (b), a private dwelling house may be principally used as the principal place of residence of a married couple or de facto partners despite the fact that it may be partly owned by another person or persons or that it may also be the principal place of residence of another person or persons.

    (2) In this section, "private dwelling house" includes a lot within the meaning of the Strata Schemes (Freehold Development) Act 1973 used as a place of residence.

    http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s67.html

    Terryw | The Loan Experts Pty Ltd | FinLaw Pty Ltd
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    Avatar of god_of_moneygod_of_money
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    @god_of_money
    Post count: 971

    Does it apply to NSW state as well?

    Avatar of god_of_moneygod_of_money
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    @god_of_money
    Post count: 971

    Sorry, I m so stupid.. it mus be NSW legislation as your post…

    Thanks terry

    Avatar of TerrywTerryw
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    @Terryw
    Post count: 14,560

    Yep, seems like NSW and QLD. Probably other states as well.

    Terryw | The Loan Experts Pty Ltd | FinLaw Pty Ltd
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    Avatar of god_of_moneygod_of_money
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    @god_of_money
    Post count: 971

    Hi Terry,

    What happen if my partner  buy another PPOR whereas I have my own PPOR.. Can she exempt from capital gain (i.e. buying under her name)?

    Thanks

    Avatar of TerrywTerryw
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    @Terryw
    Post count: 14,560

    god

    depends on what you mean by 'partner'. If spouse, married or defacto, then i believe you can only count one PPOR between you.

    Terryw | The Loan Experts Pty Ltd | FinLaw Pty Ltd
    http://www.terryw.com.au
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