Advice on removing spouse's name from PPOR before renting out

Discussion in 'Accounting & Tax' started by Tony_Ton, 15th Oct, 2021.

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  1. Tony_Ton

    Tony_Ton Member

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    Hello,

    We have a PPOR which we own on my name and my spouse's name (joint tenants). We are in the process of building a new house and want to move there after construction. Our current PPOR will be rented out.

    If I want to remove my name from the title and just leave the property only under my spouse's name before renting it out, what would be the process? Has anyone done this before? Any advise would be much appreciated.

    Also, we have a mortgage on the property, will there be any loan issues with this change?

    Cheers
     
    Tony_Ton, 15th Oct, 2021
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 15th Oct, 2021
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    ItsComplex likes this.
  3. Tony_Ton

    Tony_Ton Member

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    Tony_Ton, 15th Oct, 2021
    #3
    Terry_w likes this.
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I have been asked this question many times for the purposes of people avoiding land tax. Its not a functional strategy other tha to leave one taxpayer with no intrest if they have used their threshold (the seller). But it can be a strategy to refresh the costbase (with no CGT impacts ?) and even to use the refinancing principle to increase net debt that is then deductible.... to assist to buy the new home. The downside is the stamp duty
     
    Paul@PAS, 18th Oct, 2021
    #4