Transfer title names while subdividing ?

Discussion in 'Legal Issues' started by Jasper, 10th Oct, 2019.

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  1. Jasper

    Jasper Well-Known Member

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    I assume the answer to this is a BIG FAT NO. But I'd kick myself for not checking....

    We have a house in both my name and my spouse (investment property, not PPOR).
    We are going to subdivide this land.
    Any method I can keep both or one parcel in my name only (without triggering CGT)?

    Thanks.
     
    Jasper, 10th Oct, 2019
    #1
  2. Paul@PAS

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

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    No. A transfer may also be subject to GST without opportunity to access a tax credit. But could a sale be an effective strategy to reset the costbase - Maybe, maybe not. Seek legal and tax advice to ensure you plan the correct structure and tax outcomes
     
    Paul@PAS, 10th Oct, 2019
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  3. Terry_w

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

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    Yes.
    Depending on the circumstances, you could argue a trust relationship
     
    Terry_w, 10th Oct, 2019
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  4. Jasper

    Jasper Well-Known Member

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    Could you expand a little please? Thanks Terry
     
    Jasper, 15th Oct, 2019
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  5. Terry_w

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

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    If you paid the deposit and the loan without your spouse's help you could argue she was acting as trustee for you and this would mean no duty on transfer (or $50).
     
    Terry_w, 15th Oct, 2019
    #5