All Topics / General Property / Form 71cb

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  • Profile photo of andrewjandrewj
    Participant
    @andrewj
    Join Date: 2004
    Post Count: 2
    August 17, 2004 - 4:51 am

    Hi
    a few years ago I submitted a form 71cb to declare our place as ppr and then transfer the title from joint names to mine only. This allowed me to transfer title for a few hundred and avoid stamp duty. The reason, to “buy out” my wife’s equity in the property, hence legally increase the size of the loan for tax deductability. I am now looking to sell and take advantage of the 6 year rule, I was wondering if there is anything I have missed wrt title change etc. I believe I am correct in what I am doing, welcome any feedback.

    Thanks

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,436
    August 17, 2004 - 5:26 am

    Andrew

    I think that buying out your partner is a good way of increasing your deductions for a small cost, but if this is your PPOR I assume you are renting it out to claim the deductions.

    From what I have learned:
    -You must live in the house first to claim it as your PPOR, and
    – You can only have one PPOR at one time (except for 6 months overlap)
    – You may need to prove that this is your PPOR even tho you have elected it as one.

    check out:
    TD 51
    CGT Determination Number 51
    Capital Gains: What factors are taken into account in determining whether or not a dwelling is a taxpayer’s sole or principal residence?
    http://law.ato.gov.au/atolaw/view.htm?locid='CGD/TD51/NAT/ATO‘

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    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 andrewjandrewj
    Participant
    @andrewj
    Join Date: 2004
    Post Count: 2
    August 19, 2004 - 2:42 am

    Thanks Terry
    we lived there 7 years prior and have rented it for 3 years (total 10 years ownership). Our original intention was to look to rebuild but we like our new place too much. I understand that where we are now we will have to pay CGT if we ever sell based on those 3 years we claimed the other property as PPoR.

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