All Topics / Help Needed! / selling 50% share of IP back to spouse

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of janinetjaninet
    Participant
    @janinet
    Join Date: 2017
    Post Count: 2

    We owe $100K on PPOR and $90K on holiday rental IP valued at aprox 300K (both in both names)
    it was suggested that I should sell my share of IP to my husband for $150K (in vic so no stamp duty if I act fast) as my gross income is under $10k and all the negative gearing would increase my husbands tax return. Yes, I know I will have to pay capital gains, but it would free up some money for renos on our own home plus pay a chunk of it off.

    my questions are
    1. how much would my husband be able to claim a deduction on – just the $150K or the $150K plus $45k (half of original loan on IP)
    2. can a conveyancer do the legal transfer?
    3. as it is a holiday rental and needs a lot of management as I will no longer be an owner can I charge my husband a fee to manage it and it be tax deductable?

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

    1. Assuming Part IVA is not used by the commissioner to deny the deduction, and you structure the legal documentation correctly it would be $150k plus $45k

    2. Yes, but you should use a lawyer as many other legal issues.

    3. are you licenced, ABN and insured?

    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 janinetjaninet
    Participant
    @janinet
    Join Date: 2017
    Post Count: 2

    We have been running the business for 10 years and yes insured and council permits are in place but no ABN as income is less than 20K so not needed.

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

    Who suggested you sell your share and why?

    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 4 posts - 1 through 4 (of 4 total)

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