Capital gains when transferring real estate to family.

Hi, was wondering if anyone could give me advice on the following situation.

Current situation:
Current market value: Approx 1.2million (looking to use it as an investment property after knocking it down and placing a duplex on the land)
Currently owned by: Parents (50%), Aunt 1 (25%), Aunt 2 (25%)
I am currently in the process of purchasing my Auntie's portion (25%+25%). My parents are willing to gift their 50% to myself as well, which would be beneficial for tax purposes as they are no longer working, allowing myself to benefit from the tax deductions of owning the entire property.

Would it be more beneficial to keep my parents on the title ( and halve the tax deductions available?) or transfer my parents title to myself ( The main issue with this is that they will incur a substantial amount of capital gains tax - they originally purchased the property for ~350k around 10 years ago and have been renting it out).

Thanks!

 

Yes get some specific advice. It could be beneficial not to or to do the transfer. More to consider other than CGT too.

 

Thank you for the replies, does anyone have any recommendations with regard to who best to contact for more specific advice? I'm very new to property and would love to learn more.

 

Your parents should have independent legal and finanaca advice. The focus is on them whether it is something that they should do.

 

Agree. The parents could also have a serious gifting issue that could impact centrelink pensions and aged care and other issues in the next 5 years from this arrangement.

There may also be future deceased estate issues that could affect other family and legal advice would also be a good idea

 

Start with a lawyer for a general overview. Then if you decide to transfer you will each need separate legal advice and tax advice.

 

There are accountants and lawyers and financial planners, each of whom has their own areas of expertise. I would be speaking to a tax accountant who will usually have both an accounting and a legal qualification, but will understand the Income Tax Act in detail.

I am an accountant but tax is not my area of expertise.

 

accountants generally don't have legal qualifications - if they do they are usually lawyers who are former accountants!

 

Sounds like in depth advice and information is required here, not something that can be achieved from a forum.
There are also indications above that you are new to property and you are intending on building a duplex on what could effectively be a portion of somebodys inheritance? (big assumption by myself here)