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Husband is not borrowing for the wife but borrowing to purchase the property of the wife. f the current loan is $90k then only $45 k of this would be the wife's share and $45k the husband's (assuming 50/50 ownership). So he would need a loan of $545k to buy out wife's share and to...

If wife were to go bankrupt then the property would be relatively safe if it was transferred for market value. This would depend on the reason for the transfer, the financial situation of the wife at the time of transfer and how you set up your transactions in the future.

Yes, it could work as long as it was done early enough in the relationship

Spouse means not just those that are married but also, s995: But note that at s 118-170 which covers spouses only having one main residence between then, there is an exception for "a spouse living permanently separately and apart from you)". This is a good idea why it is not tax affective...

You can have 2 main residences for a period of 6 months. s 118-140 ITAA 97 http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.140.html But this probably won't apply if you time things right anyway. If you move into the new property at settlement then you won't be renting out...

Your husband will be purchasing a property. The loan for this property would be deductible if the property is being used to generate income so timing of moving out should not matter. eg. if you bought a house for $500,000 with a $500,000 interest only loan and then moved out of it to rent it...

It worked at last - I had to click the button to print on the top right. There are 2 issues in this PBR - a couple having one main residence each, which means they cannot claim the CGT exemption on both. Husband wants to buy wife's old main residence and wife wants to buy husbands old main...

I still cannot access that PBR for some reason!

Thanks Jason. The link worked second round but it seems this ruling isn't published yet. 1011466416163 Printable version Edited version of private ruling Authorisation Number: 1011466416163 This edited version of your ruling will be published in the public Register of...

Thanks Jason. However, that link no longer works. Are you able to supply the Authorisation number please? I tried 1466416163 which appeared in your link, but this didn't work either.

ATO ID 2001/79 http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID200179/00001 No guarantees against Part IVA but still a strong indication.

Unless I am getting threads mixed up again I think they want to buy a new PPOR so in this case the new loan wouldn't be deductible.

To convert non-deductible debt into deductible and thereby save a crap load of tax.:D

if you could! Problems possibly: - Market value substitution rules in tax act - valuations from lender may not come up high enough. You could encourage the valuer though.

Thinking a bit more about this..... In VIC there are huge potential benefits of having the marital home owned by one spouse. Many people decide to move out of their home at some stage to upgrade to something bigger. This gives a great opportunity for a couple to have the non owner purchase...

you might have to lend him some money

There are clawback provisions under the bankruptcy act - longer claw backs for undervalue transactions. Decutibility depends on what the money borrowed is used for. So if you have a $1 transfer and then borrow $300,000 to pay your spouse it could be that only the interest on the $1 of this...

In Vic you are luck as it can be stamp duty exempt on a sale from you to husband. There should be no CGT if it has been your main residence. Just make sure you transfer it for full value or you may get into trouble with asset protection and tax deductibility. Also consider updating your...