Our current situation:
PPOR in my name only, est value $350000 (loan paid off, but with only $36000 avail for redraw).I would like to "sell" this home to my wife (so all in her name), with an offset-type loan for the $350000 (or whatever evaluation bank would allow) in her name.
I know i will not have to pay CGT on sale, as it was PPOR. However, I thought that transfer of PPOR from one spouse to another in Victoria was exempt from stamp duty, but i have searched on the internet, and cannot seem to find anything specifically stating this.
Given i cannot find specific information on this, my questions are:
– It is possible to sell to spouse as noted above, and have exemption from stamp duty ?
– Can i sell the house to my wife, or does it have to be a (free) gift ?
– Is there any requirements to the transfer, such as continuing to reside for (say) 12 months as PPOR ?
– Is there anything that i am missing here that might create a hurdle to prevent this being allowable ?
If someone could provide a link to specific ruling or taxation site information on this i would appreciate it.
I have done a search on this site in regard to this, but cannot find information specific to our situation.
Thanks in advance.
I think you can do it without stamp duty. Look up the Duty Act (Vic) and you should find it whether it is possible and the rules – one is, I think, that you must intend it to be your PPOR.
I don't think there are any differences with selling it or gifting it in terms of stamp duty, but you may have some tax issues – unless your wife borrows to buy the interest may not be deductible later.
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
here it is
s 43 Duties Act 2000 (Vic)Duties Act 2000 – SECT 43
Marriage and domestic relationships
43. Marriage and domestic relationships
* * * * *
(3) No duty is chargeable under this Chapter in respect of a transfer of
dutiable property from one person to another person, or from two people to one
of them, or from one person to themselves and another person if-
(a) the people are spouses or domestic partners of each other; and
(b) no other person takes or is entitled to take an interest in the
property under the transfer.
http://www.austlii.edu.au/au/legis/vic/consol_act/da200093/s43.htmlTerryw | 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
HI Terry,
Thanks heaps for your assistance. It is much appreciated. I wanted to see something in writing in regard to these regulations before i started with changing anything, rather than just hoping all would be OK
Cheers
Paul
no worries. its easy when you know where to look
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
Is it same in NSW as well?
nope. much different in nsw. From memory it is stamp duty exempt from one spouse to both spouses but only for the main residence.
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
Hi,
Can anyone tell me is a am liable for stamp duty if a want to buy my parents house in Victoria. Would I be exemp under Duties Act 2000 – SECT 32W???blackaroma wrote:Hi,
Can anyone tell me is a am liable for stamp duty if a want to buy my parents house in Victoria. Would I be exemp under Duties Act 2000 – SECT 32W???I don't think so. it says 'subsequent purchaser who obtains a transfer right from the first purchaser'. I think this means if a person sign a contract and then later adds another before settlement.
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
Hi Terry,
Sorry to bring up an old post, but do you know how many times the "Natural Love and Affection" transfer clause can be used?
Cheers,
Steve.No love and affection are needed as this is for transfers between spouses!. There is no number limits listed in the legislation, so it should be unlimited as long as you can meet the requirements.
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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