Tax Tip 519: Terryw’s Tips Relating to Spousal Transfers

Discussion in 'Accounting & Tax' started by Terry_w, 19th Jul, 2023.

Join Australia's most dynamic and respected property investment community
  1. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,286
    Location:
    Australia wide
    I have written several tips on spouses selling or transferring property to each other and here is a list of those tips, hopefully in date order:


    The spousal transfer strategy involves one spouse selling part (or all) of a property that they own to their spouse who borrows to buy it. The proceeds from the sale could be used to then pay down non-deductible debt with extra interest being claimed. Some states allow stamp duty exemptions where the property is the PPOR – with various differing conditions.


    Legal Tip 95: Spousal Transfers and Some of the Legal Issues Legal Tip 95: Spousal Transfers and Some of the Legal Issues

    Tax Tip 68: Transfers Between Spouses and Stamp Duty in NSW Tax Tip 68: Transfers Between Spouses and Stamp Duty in NSW

    Tax Tip 100: Transfers between Spouses and CGT Tax Tip 100: Transfers between Spouses and CGT

    Tax Tip 101: Transfers Between Spouses and Stamp Duty in QLD Tax Tip 101: Transfers Between Spouses and Stamp Duty in QLD

    Tax Tip 102: Transfers Between Spouses and Stamp Duty in the ACT Tax Tip 102: Transfers Between Spouses and Stamp Duty in the ACT

    Tax Tip 103: Transfers Between Spouses and Stamp Duty in VICTORIA Tax Tip 103: Transfers Between Spouses and Stamp Duty in Victoria [NO LONGER VALID]
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    22,937
    Location:
    Sydney
    Think that the words "spouses" sometimes has people thinking incorrect things.

    Many people have spouses and dont acknowledge it. And if my experience is considered I believe its more prevalent for same sex couples and defactos who would like to think spouse isnt them beause they arent married. Very common A & B live together and are planning marriage and they argue they arent spouses. Had this recently with a couple who arent married but co-own three properties incl their hme and have 2 kids and have lived together for 6+ years. You cant get more of a spouse than that. Issue was private health. Her policy covered kids and her. He didnt have a policy. he saysthe policy was more for wife and kids eg child birth etc.. I argued both have to pay medicare levy surcharge. They didnt like this.

    Anotherw as also confusing and a data mismtach. He and ex maintain a privae policy that shows them as a coupe + 2 kids. But they arent spouses. Tax rules say they are despite them not being this. Its a bug in how health funds report policies. Each year a audit query and we have to explain. Last year ATO advised they can tell fund they arent spouses and co-parent and the code will then be OK...

    Other things
    • First home ownership
    • Duty and other property purchase exemptions and concessions
    • PPOR
    • Main residence
    • Private health and medicae levy surcharge
    • Child care fees and rebates
    • centrelink and other benefits (strangely most have that correct but say its different for tax)
     
  3. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,286
    Location:
    Australia wide
  4. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,286
    Location:
    Australia wide
  5. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,286
    Location:
    Australia wide
    Sgav likes this.
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    22,937
    Location:
    Sydney
    Spouses can also be impacted by rules on death eg Superannuation and dependency etc. Super is often a major asset of the deceased but not managed by a will. Spouses may assume they have entitlement when this may or may not be the case.

    Legal title and wills eg joint tenancy. When a title is transferred from two to one this must be considered as joint tenancy could be lost. Is there a will ? etc. And if its one to two is the title joint ? OT TIC ?

    And many times these estate and death issues must consider taxing laws. So legal - tax advice is important
     

Price Accounting are a leading tax service for your property + tax issues. Contact Paul@PFI for property focussed tax services using our client portal access, digital signing and checklist based approach for best pricing. Free client pack included.