Hi all, I completed a search on the forum but wasn't able to find an answer so bear with me. I understand that capital gains is not payable upon subdivision of a property on the condition that ownership is retained, however what happens if the resultant property is co-owned by a spouse? To be more specific:
– Property 'A' includes an existing house and is held in the name of person 1.
– The property is then developed with the addition of a rear unit (property 'B')
– Development is then subdivided resulting in property 'A' still being held in the name of person 1 and property 'B' being held in the names of person 1 and a spouse.
Has a CGT event been triggered with the addition of the spouse in property 'B'?
Given property can be transferred between spouses without duty my assumption is no, but thought to double check.
Thanks in advamce.
There are 3 ways this could be taxed. It may end up being a combo. It could be treated as capital account unit a certain point and there after on income account. Seek professional addvice
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
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