Hi everyone
If a property is in two people’s names (Husband and Wife) and we would like to put this property into one name what are the fees and charges? Do you have to pay stamp duty again? Or is it waived due to the fact that it was allready paid when the property was initially purchased?
Cheers
Daisii
Hey Daisii
Best person to ask is your accountant – or an accountant on this forum.
It is my understanding (and I’m trying to do this myself to extricate myself from a relationship gone bad) that stamp duty is payable, and if it is an IP, so is Capital Gains!! This is making it really hard for me, as we own 6 properties together, and my CGT bill would be fairly hefty – especially hard considering I just want to sign them over to him for no money on my part.
Anybody that can tell me my understanding is wrong – I will buy you many beers!!
Cheers
MelYou have to pay stamp duty on 50% of the value of the property if you own it equally.
G’day Daisii…
You need to check with a Solicitor, a phone call would do it. I am sure that I’m right in saying that it is referred to asa “Love and Affection” transfer, and as such, no Stamp duty is payable.
Maybe a small Govt. charge for registration.Cheers
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Mel…
Don’t do anything like that, ring my solicitors as your in Canberra from memory. Meyer Clapham
on (02) 6279 4444 and talk with Paul Green or Michael James. If you can’t get a definite answer
over the phone..go and see them.Cheers
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Thanks Billfromoz
I have looked into it a little and have been getting different answers. I only just spoke to someone at my bank and he says that he is “pretty sure” that it has been stamped once and shouldn’t be again. I wasn’t too confident with his answer but will ring my solicitor tomorrow and see what he says.
Benson,
where did you get this information from that you only have to pay stamp on 50% of the value of the property and why?
cheers to all
Daisii
Daisii and Mel..
What it may come down to is if the property was bought as Joint Tenants( husband/wife) or
if as Tenants in Common ( couple of mates, biz partners) then perhaps it will be treated differently as Tenants in Common would not be considered as a “Love and Affection” transfer.Legal matter..
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Daisii,
Stamp Duty laws vary slightly from state to state but the information I have is correct for WA.
You would be liable for stamp duty on 50% of the value of the property because that is the amount of the property being transferred ie 1 party already owns 50% and is acquiring the other 50%.
If you gifted your 50% to your partner or vice versa the duty is still payable only the liability shifts from the acquirer (person who would usually be liable for the duty) to the person gifting the property, it would still however be dutiable.
As it is not an arms length transaction the revenue office would get their own valuation to determine the duty payable.
Hope this helps.
Benson.
It varies considerably between states. A solicitor or conveyancer will be able to give you a quick answer in the morning.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I went halves in a place with my dear dad… When i bought him out i had to pay stamp duty to put the house in my name only – sucks huh ??
That is in NSW by the way… [
]Cheers,
Paul…“The only thing you get from looking backwards is a sore neck…”
If you rang the family court I think that you will find as part of a court sanctioned deal that matrimonial dewelling at lease is exempt!
Thanks for everyone’s replies.
We are in Victoria and the property in question is an IP that currently is negatively geared. As I don’t earn an income, for tax purposes we believe we would be better off putting it in my husband’s name only.
If anyone has any information specifically regarding the situation in Victoria it would be much appreciated.[
]Cheers.
What about the cost and difficulty of changing from ‘joint tenants’ to ‘tenants in common’ with a 90% to 10% split (or any combination), maybe this would be a cheaper option for you.
BC
Thanks bc,
Could you please provide some more information regarding your suggestion?
(‘m guessing ultimately we’ll still need to seek legal advice!)
Thanks
I’m know someone smarter than me will give a definitive answer but until such time, my understanding is that there is two ways to complete a contract, one is as normally as wife and husband (joint tenants) or as partners ie.
friends, family etc but also as wife and husband, (tenants in common) the advantage of this is it allows you to assign a percentage ratio of ownership. Hence both names appear on the contract but you can get the associated tax benefits ie. 90 – 10 to whoever is the highest tax payer.This is how our properties are structured.
This is a very simplistic overview, a more technical one will come along very shortly from a professional I am sure.
BC
An additional benefit is that it allows both parties to be on the loan application but ownership can be as extreme as 99/1% split.
This is particularly useful when one party is exposed to the threat of litigation.
Many of my doctors choose to structure this way.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter, do you have an opinion or knowledge on the cost of changing to tenants in common as opposed to removing name altogether?
BC
No I don’t.
It is after 9am now – a quick call to a solicitor will resolve it.
Please post your advice!
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Many of my doctors choose to structure this way.’
You mush be very sick to need many doctors, I would also be concerned that they are worried about litigation, you better check their credentials, OH you meant that many of your clients are Drs [
] (if not get well soon [] )BC
If two people own several properties together then (it is my understanding) that they can exchange their share in one property for their partner’s share in another property and no stampduty is payable provided each of the shares in the properties is of equal value.
If one half of a particular property is worth more than one half share in another property then there will be stampduty payable on the difference.
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