Can i sell to my own daughter?

Whoops sorry..
She gets a loan of 70%.
I assume you need to pay your bank 50% (Assumption: it has doubled and you would have extracted equity).
So, you are left with 20%

 

ATO luvs catching people like this.....if they get you they will look your entire portfolio.....and if you are not squeaky...then expect the worst.

 

Poor you! You have an asset which doubled in value and now you need to pay some tax...

 

Can we leave judgemental comments like this out ? It really has no added value ...

I pay A LOT of tax..just don't want to pay a dollar more if necessary

And don't forget i am not selling..i am intending to pass to my daughter and she will cop the tax eventually ....

 

The only way to do this is via your will.

 

Virgo tax is the only way Australia keeps services like Hospitals, Pensions in place. This is what makes Australia great.

So let me preface by sayin' what I say below is not advice as I am only a noodle from ya internet straight outta Lagos...:

1. Why not just sell 50% to your daughter...but get a valuation by a registered valuer. That maintains the paper trail for the ATO.

2. So lets say your 400 property has 30k of but and sell costs. And a registered valuer puts a value of 750k on it. A lot a being a lot more convservative....so they may val for less.

3. So if you sell 50% to dear daughter. The net gain is 50% of 430 in costs which is 215k...minus 50% of the gain of 750k which is 375k. So that total gain is 160k. 50% is capital gains free so the taxable component added to dear daughter's income is 80k.

4. Based on 37% marginal income plus 2% mediscare. That is about 40% in tax. So on 80k you will pay 32k.

5. You can further minimize by paying interest in advance in 1-2 properties. Lets say that brings down your CG to 50k. That is 20k...which is a fair amount to pay.

 

Nah mate....thunk outside of the square but not outside of the oval.....see my response below...of course ya will say I am not qualified.

The issue to minimize tax...and not avoid it (Part 4a)....

 

My apologies, I spend most my time in the Property Economics section of this site and after 10 minutes of reading the doom and gloom I just need to post something light hearted.

No judgement here, I’m all for saving on tax as well

 

I'd find watching wet paint dry more educational than the Economics section....

 

Hi all

Thanks for taking the time to post your invaluable suggestions..

To Albanga: no offence taken indeed

To Terry: i want to pass to her when i am alive..not dead...so not sure how a will is going to help?

To Sash: this still can't address my problem of reducing land tax (but thank you for taking the time to post a detailed reply..appreciate it!)

Please keep suggestions coming (if any)

 

You can still allow her to benefit from the property beforehand, you don't necessarily need to die first. You could allow her to live in it rent free for example

 

haha what can i say, im a glutton for punishment