Ownership split to benefit tax.

In QLD full duty would be payable on the value transferred between spouses. There is only a tight concession for transfers between spouses for owner occ where the end result is 50/50 and there is no consideration.

 

It may still be worth doing a spousal transfer later on. Take for example where there is some growth in the property and you haven't paid off the main residence loan. Your wife could borrow to buy you out. The funds given to you could be used to pay off the main residence and your wife could deduct the interest against the rent she receives.

Whether it is worth it or not will depend on the costs at the time and the potential savings involved.

 

Thanks Terry. I had to make a decision quickly so apart from for education for the next time around I'd say it's a mute point. Lessons learned. Thanks for all your help here, very much appreciated.

 

Now that one is a little gem indeed. Noted for the, hopefully, not too distant future. Thanks again

 

Thats understandable. Next time you will be more knowledgeable.

 

If she bought me out would there be any tax to pay if i agreed to the sale at the price I'd paid originally. .. I wouldn't have made a gain in that way so no CGT.

The split i agreed in the end was 25% me 75% my wife. Sale price $283k.

 

Transfer from you to wife would be assessed on market value for both cgt and stamp duty. You would pay the cgt if there is a gain and she would pay the duty (only on the amount transfeŕred not the whole property)

 

Thanks Terry. The ATO really don't let anything slide hey?

 

The ATO just implement and administer that Tax laws. Can't blame them too much!