Split sale over 2 years

Discussion in 'Wills & Estate Planning' started by Trainee, 28th Oct, 2019.

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  1. Trainee

    Trainee Well-Known Member

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    John owns a property, post 1985, single name, always been an ip, no exemptions.

    John wants to transfer the property to his daughter Alice.

    Can the house be transferred 50% in one year and 50% in the next year so that cg is split between the two years?
     
  2. Terry_w

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

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    Yes but the savings won't be much
     
  3. Ted Varrick

    Ted Varrick Well-Known Member

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    Terry, doesnt this depend on the amount of CG involved, and whether or not Alice has any income or not?

    Although, in the Sydney market it's reasonable that the figures involved are fairly large...
     
  4. Terry_w

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

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    Yes true. If small gain and low income the effect will be greater
     
  5. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I have encountered several clients who have progressively shifted TIC title from one owner to another.

    Each change involves some legal costs and may become complicated if there is any finance especially the first time. It can be an effective way to spread the duty and CGT costs. One issue that cant occur is the first home buyers concessions since the original owner will cause the property to fail the tests. Legal advice on wills etc may also assist so if one party dies the events can be completed or continue without complications.
     
  6. thesuperman

    thesuperman Well-Known Member

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    I'm guessing it could be done over many years too, eg. 10% per year for 10 years. What happens with the stamp duty if spread out over the years? I'm guessing there's quite a good saving in stamp duty if done something like 10% per year over 10 years as an example.
     
  7. Archaon

    Archaon Well-Known Member

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    What about 10 years of growth and CPI?
     
  8. Trainee

    Trainee Well-Known Member

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    Transfer would have to be done at the market price at the time of transfer. Main purpose is to manage the cg.
     
  9. Terry_w

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

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    What about the conveyancing costs, mortgage discharge and rego and loan app fees etc
     
  10. Trainee

    Trainee Well-Known Member

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    Agreed. Was thinking about this in a very specific situation. Transferring a property to an adult child, no mortgage.
     

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