All Topics / General Property / Amending joint property to 1 owner or majority share with no stamp duty?

Viewing 10 posts - 1 through 10 (of 10 total)
  • Profile photo of abandpopsabandpops
    Participant
    @abandpops
    Join Date: 2012
    Post Count: 4

    Hi again, hoping for the forums expertise on a move to rent our property. As unexperienced in this field need advise…We are looking to transfer our title from joint names to majority ownership by one person or outright by one of the parties in our relationship in order to take advantages of tax benefits of intertest offset in income tax. Office of inland revenue? advises that any change in the title of the loan will incur stamp duty – is there any way that we can do this to utilise this cost saving (tax offet) without incurring stamp duty ? 

    Many thanks in advance…best rgds.

    Abandpops 

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Varies from state to state – which state is the property?

    Profile photo of abandpopsabandpops
    Participant
    @abandpops
    Join Date: 2012
    Post Count: 4

    Hi Derek, apologies, property in Brisbane QLD. Thanks..

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Exemptions usually only exist for adding spouse or removal (divorce) not for asset protection purposes but check the OSR website.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Not in QLD unless relationship breakdown.

    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 gmh454gmh454
    Member
    @gmh454
    Join Date: 2003
    Post Count: 537

    also you would need to get the loans changed..

    and if the ATO looked at it (almost never) then you could have an issue with the old question of intention .. when purchased

    safe way is the divorce….

    just quietly slip the paperwork in among lots of other docs while she is watching her favourite TV show

    and I have seen it done,  wound up sleeping in the factory for a while till she calmed down..

    Profile photo of jmsracheljmsrachel
    Participant
    @jmsrachel
    Join Date: 2012
    Post Count: 711
    gmh454 wrote:
    also you would need to get the loans changed..

    and if the ATO looked at it (almost never) then you could have an issue with the old question of intention .. when purchased

    safe way is the divorce….

    just quietly slip the paperwork in among lots of other docs while she is watching her favourite TV show

    and I have seen it done,  wound up sleeping in the factory for a while till she calmed down..

    I wonder how many men are brave enough to try that

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Yes as been said do a fair bit of Spousal Transfer work and not as easy it sounds.

    Firstly need to do the Transfer and the new loan at the same time and be suprised how many lenders can't wrap their heads around it.

    Also sorry to say Stamp Duty is payable but will only be on the balance of the Transfer value and not on the full new consideration.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    gmh454 wrote:
    also you would need to get the loans changed..

    and if the ATO looked at it (almost never) then you could have an issue with the old question of intention .. when purchased

    safe way is the divorce….

    just quietly slip the paperwork in among lots of other docs while she is watching her favourite TV show

    and I have seen it done,  wound up sleeping in the factory for a while till she calmed down..

    Not sure what you mean about intention?

    When one spouse buys out the share of the other spouse the intention doesn't really matter. It is a purchase of property. If money is borrowed to buy this property and the property is available for rent then generally the interest will be deductible as the purpose of the borrowing is to buy an income producing asset. The same principles apply for the original part of the property the spouse may already own.

    The ATO acknowledge that the interest may be deductible – see th ATO ID i cited above for proof.

    But don't try this at home without legal advice as there are many issues involved.

    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 TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    Qlds007 wrote:
    Yes as been said do a fair bit of Spousal Transfer work and not as easy it sounds.

    Firstly need to do the Transfer and the new loan at the same time and be suprised how many lenders can't wrap their heads around it.

    Also sorry to say Stamp Duty is payable but will only be on the balance of the Transfer value and not on the full new consideration.

    Cheers

    Yours in Finance

    Richard, stamp duty would apply in most states, But in Victoria it seems one spouse can buy out the other spouse for only nominal stamp duty and this is the case even if it is an investment property.

    Should a purchaser many a vendor just to save stamp duty?

    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

Viewing 10 posts - 1 through 10 (of 10 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.