In recent weeks I have had at least 3 people ask me if they can add a spouse to title before selling an investment property so that they can save CGT by having the capital gains split between 2 people. It doesn’t work like this because transferring title to the spouse is itself a CGT event. Example Homer buys an investment property for $100,000 and wants to sell it now when it is worth $500,000. Homer approaches his tax lawyer and says he wants to add his wife Marge to the title. On enquiry, it seems Homer thinks the $400,000 capital gain will be split equally between himself and his wife Marge so they each get taxed on $200,000 of the capital gain. But this is not the case because Homer is transferring $250,000 worth of the property to Marge. This will trigger CGT for Homer - a $200,000 capital gain. If Marge and Homer then quickly sell the property they will have different CGT calcs each. Marge will probably have no CGT payable as her share was acquired for $250,000 and she sells for $250,000. No gain so no tax. But there will probably be a loss as transferring will trigger duty and conveyancing costs too. Homer will then be disposing of his 2nd half of the property so he will have a $400,000 gain on this. Homer has not saved any tax. It has actually cost them money in wasted stamp duty, loan costs and gift fees. There could be some slight tax savings in certain situations where the transfer between spouses happens in one year and the sale happens in the next year - see a future tip on this.