Transfer IP to spouse

Viewing 9 posts - 1 through 9 (of 9 total)

YoungInvestor
Participant
@younginvestor
Join Date: 2003
Post Count: 377
January 1, 2010 - 5:52 am
Hi all,
Is it possible to transfer ownership of an investment property to your spouse without incurring duty on the transfer of land?
I know it can be done for the PPOR, but just wondering if I can do it for IP's as well.
The main aims of this would be:
– Reducing income tax liability once the properties turn CF+ as my spouse is on a lower income.
– Reduce the applicable CGT if properties were sold down the track (again due to lower taxation brackets).
Thanks in advance!
YI.
ps: I'm in Vic if that has any bearing on the response… Cheers.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
January 1, 2010 - 9:49 am
Simple answer is NO.
Any transfer of ownership will incur both Stamp Duty and if a Capital Gain has been made CGT.
Hence the reason we suggest to most clients they build their portfolios using a DFT.
Richard Taylor | Australia's leading private lender
sonyasal
Member
@sonyasal
Join Date: 2008
Post Count: 421
January 1, 2010 - 11:11 am
Hi Rivahrd,
Please excuse my ignorance, but what is a DFT? Can you explain how it works and would a single eprson need to set one up or is it just suited to married couples? Thanks for your invaluable knowledge on all things finance
cheers
Sonya
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 1, 2010 - 11:44 am
Actually in Victoria it is possible. Not in most states thought
see
s 43 Duties Act 2000 (Vic)
http://www.austlii.edu.au/au/legis/vic/consol_act/da200093/s43.html
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
sonyasal
Member
@sonyasal
Join Date: 2008
Post Count: 421
January 1, 2010 - 11:50 am
Richard I apologise for mispelling your name, I tend to be a bit dyslexic when typing, I should proofread more carefully before posting, ( I had to correct three, make that five typos before posting this one LOL)
cheers Sonya
YoungInvestor
Participant
@younginvestor
Join Date: 2003
Post Count: 377
January 1, 2010 - 12:52 pm
Thanks for that Terry.
That settles what to do with our existing properties… now I just need to work out whether to go with company and trust for future purchases, or keep them in individual names!
Thanks again.
YI
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 1, 2010 - 1:16 pm
Never use a company to hold appreciating assets – just for business.
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
YoungInvestor
Participant
@younginvestor
Join Date: 2003
Post Count: 377
January 1, 2010 - 1:31 pm
Sorry Terry – Was referring to having a Trust with a Company Trustee, rather than ownership under the company itself.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 1, 2010 - 1:41 pm
ok, thats good
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