Spouse transfer of ppor title - tax implications

Me and my wife jointly own our PPOR in Victoria. One scenario I am evaluating is to buy new PPOR and rent the current one as IP. The PPOR has 400k in offset and 400k loan remains. PPOR is valued now at 650k. I will use the money in offset to buy the new PPOR. I am in high tax bracket and wife is below tax threshold. To maximize negative gearing is it advisable for my spouse to transfer the title completely to me before I turn it to IP. In Victoria this is exempt from stamp duty if "The property is transferred for no consideration." What does it mean? Is there any CGT tax implication with ATO?

 

This would not be exempt from duty in VIC. Duty would apply on the full purchase.

Also if you did the transfer without consideration only $200,000 of the interest would be deductible. You cannot make a gift and claim interest on funding that gift.

It would be a CGT event, but the main residence exemption may apply if it was your main residence for the whole time and other requirements met.

 

Terry is that the same if it is owned Tenants in Common? What if they just wanted to adjust the ownership level? Say from 50/50 to 90/10 or even 99/1.

 

Yes.
If you move from other than 50/50 there will be stamp duty payable.
Exemption is only for gifts where the end result is 50/50 ownership
If going 90/10 or 99/1 less interest would be deductible, even if full purchase price is paid - because you can't borrow to pay yourself.

 

See these threads:

Tax Tip 161: The new Duty on Spousal Transfers in VIC Tax Tip 161: The new Duty on Spousal Transfers in VIC

Tax Tip 100: Transfers between Spouses and CGT https://propertychat.com.au/community/threads/tax-tip-100-transfers-between-spouses-and-cgt.9275/

Tax Tip 103: Transfers Between Spouses and Stamp Duty in VICTORIA Tax Tip 103: Transfers Between Spouses and Stamp Duty in VICTORIA

 

I am confused. I thought if my wife transfers the title to me there is no stamp duty as per https://www.sro.vic.gov.au/spouse-and-partner-exemption .

 

look at the legislation first and then come back and tell me what you think.
The link is in my posts above.