Hubs and i are purchasing our second investment property, Now trying to get info to find whos name to put it in Hubs is on salary $120,000 and im on a measly $25.000
first property is running at aloss of about 150 a month as well as the second of about 100 a month
We are looking at selling both in 5 to 7 yrs so wondering td we cut the losses as not to pay huge capital gains First Property is in my name soley and do we put this second one in both names or just mine the lesser earner ?
Thanks any info apperciatedThink both long and short term.
When you sell CGT will be payble so if it is in the name of the highest income earner this may mean more tax. If the loss is just $100 per month, then maybe it is not worth worrying about trying to save tax now if you will pay much more 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
99% in Husbands name 1% in your name,.To achieve max tax advantage ,then 1 year before you decide to sell it reverse it and put most tax advantage in your name.Otherwise my understanding is hold onto the property until retirement and you avoid CGT
Thanks Dean
and how do we do that 99% and 1% ? is that by putting in company name ? sorry very new and still trying to get my brain around thisNo problem…
No need to put it in a company name. Tenants in common will allow to adjust the percentage share of the property. You will need to update your will thou, so the soul survivor gains ownership Unlike joint tenants where the share is 50/50 the soul survivor automatically gains 100 % ownership.dean kamanis wrote:99% in Husbands name 1% in your name,.To achieve max tax advantage ,then 1 year before you decide to sell it reverse it and put most tax advantage in your name.Otherwise my understanding is hold onto the property until retirement and you avoid CGTCan you actually reverse the ownership percentage down the track? How would this be done?
I think you will find some tax avoidance issues here.
From original post, I'm not sure you should be worried about cutting losses if you are making gains? Remember tax is only paid on gains. Limiting tax is good with strategies, but avoiding is ………
Further, as mentioned above, selling may not be required?
Anything can be done at a cost.
Can you actually reverse the ownership percentage down the track? How would this be done?
You can indeed alter the split of ownership down the track but will incur CGT and possibly Stamp Duty dependant on the State the property is in.
I think you need some specialist advice as other than Terry / number 8's reply i am not sure the other responses are quite accurate.
Richard Taylor | Australia's leading private lender
dean kamanis wrote:99% in Husbands name 1% in your name,.To achieve max tax advantage ,then 1 year before you decide to sell it reverse it and put most tax advantage in your name.Otherwise my understanding is hold onto the property until retirement and you avoid CGTWhat about the CGT consequences?
Stamp duty would also be applicable in many States, but may be exempt in VICTerryw | 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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
