Depending on your circumstances the property could be totally CGT free if sold within 6 years of it being rented.

paradigmv wrote:
I know of the existing exemption when adding a spouse to title of main residence as you rightly point out, but this is a separate concession that applies here.

The QLD govt brought in a zero stamp duty concession for first home owners' purchase of a main residence effective from 21 Sept…[Read more]

paradigmv wrote:
This is the equity loan I've taken out over the PPOR currently in my name. The loan was at 80% LVR of the PPOR value and was fully directed to purchase the IP (which I'm having the offset dramas with).
If I transferred the property to my wife's name or go tenants-in-common with her, then that would mean the loan would have to be…[Read more]

Def pay down non deductible debt first.

Consider selling one of the houses, ideally one in your name only, when you are not working and pay down the non deductible debt.

paradigmv wrote:
Tom,
My understanding is that if my wife who is not working and does not derive an income is on the mortgage, I can only claim 50% of the loan interest as deductible.

Happy to be corrected if wrong.

Wrong.
who used the money and what was the money used for?

paradigmv wrote:
 

All the lenders I have spoken with have said that if hers is the only name on the title, she must be on the mortgage as well.  Perhaps the solution is for her to buy it from me under some kind of tenants-in-common arrangement where she owns 90% and I own 10%…? Perhaps that way she can provide a security guarantee for the…[Read more]

paradigmv wrote:
Thanks Terry.
The key benefit that we would derive from the PPOR being fully owned by my wife is that when it becomes an IP she will be able to collect about 15k of rent which being under the 20.5k pa effective tax free threshold will mean she pays no tax on the income. So her taking out a loan to buy it off me at the full…[Read more]

paradigmv wrote:

 
So to untangle myself from this added blunder, would this approach work to restore complete tax-deductibility?:
* repay the 100k surplus in the offset back into the IP loan (270k) reducing it to 170k, whose interest is fully tax deductible
* when purchasing another IP in future, organise for a loan split to cover the deposit…[Read more]

paradigmv wrote:
So what we'd like to do now is transfer the PPOR into my wife's name (who has no income), paying no CGT and no stamp duty (this is QLD & she's never owned a home). The question is, can we do this without adding her name to the mortgage secured against the PPOR, whose original purpose was to buy the other IP mentioned…[Read more]

paradigmv wrote:
  The surplus we put into an offset account against the IP loan for investment use only in future as opportunities arise (e.g. capitalising interest, purchase of shares, deposit for next IP, etc.).

Don't worry we all make mistakes. What you have done is not a mistake anyway, it is just that it could have been set up to be…[Read more]

aussieguy2000 wrote:
For starters you are saying that you want to transfer a property which in reality is owned by the bank to her, no bank is going to let that happen without discharging the mortgage first. Just like when you sell a car, as long as there is a loan, the banks hold the item as security, that is the difference between a secured…[Read more]

Richard,

Maybe add something about the land tax as this varies from state to state. In NSW for example there is no tax free threshold for trusts at all – only some relieft if fixed unit trusts.

Def do not have personal trustees. There is a recent case, Shahail from memory, where husband and wife were trustees. Husband did a runner overseas taking all the super money. Wife only remaining trustee in Australia. She ended up coping a whopping fine for breach of trustee duties and the fund was non copying and taxed at 46.5%.

Also consider…[Read more]

I am a lawyer so can set up trusts and SMSF, but I don't hold a AFSL licence so cannot give financial advice which you would probably need in this situation I think.

Yep, good point!

jimidix wrote:

Terry W, would an Agents market appraisal be sufficient at time of sale? (the family member wll not be applying for finance so wont be getting a val done) – cheers

No. These are essentially worthless.

OSR may also insist on a valuation for stamp duty purposes.

yes

no – must be in the trustees name
ideally individually as you may be liable if one of them skips town with your money
tax return in india and australia

Me too!

You might even end up with a loss!

Make sure you get a valuation done for the sale too because the ATO may argue you are selling under market value if there is a family member involved.

Call me skeptical, but Your first and only post and it looks like you are trying to drum up interest for this mob.