Transfer to spouse in Victoria for no consideration

Discussion in 'Accounting & Tax' started by Hamish Blair, 11th Jan, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Hamish Blair

    Hamish Blair Well-Known Member

    Joined:
    29th Sep, 2015
    Posts:
    489
    Location:
    Melbourne
    We bought a block of land and built a PPOR on it - both the property and mortgage are in my name.

    I believe I can transfer 50% to my wife (as JT or TIC?) provided there is no consideration, and not trigger the need to pay stamp duty or CGT.

    There is a mortgage; would I end up with 100% of the existing mortgage and 50% of the property, and she 0% of the mortgage and 50% of the property?

    Hidden gotchas? Things to think about ?
     
    Hamish Blair, 11th Jan, 2020
    #1
  2. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,985
    Location:
    Australia wide
    Consider deductibility of interest.new loans and mortgages mean requalification
    Cgt not necessarily exempt.
    See my tax tips
     
    Terry_w, 11th Jan, 2020
    #2
  3. Paul@PAS

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

    Joined:
    18th Jun, 2015
    Posts:
    23,536
    Location:
    Sydney
    Legal advice.
    Lender / broker advice. Lenders will likely require that a co-owner also be a co-borrower when the loan is refinanced.
    Tax advice.
     
    Paul@PAS, 13th Jan, 2020
    #3
  4. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,985
    Location:
    Australia wide
    And the full interest on the loan won't be deductible. At best 50% of the remaining loan.
     
    Terry_w, 13th Jan, 2020
    #4