Can 99% & 1% ownership reduce stamp duty if my first home and husbands 2nd?

[malipooh04]

Hello everyone,
My husband and I have just gone under contract on my/our first home...
My husband used his FHOG/payslips when he was about 22 to help his parents into a house and went on the title with his mum. A couple of years ago, he transferred his share of the house over to his dad.
Now we've saved up enough of a deposit to get into our own place. I heard that putting 99% ownership in my name and 1% in his name might reduce stamp duty it'll be my first home.
And when should we have paid CGT for the transfer of ownership to his dad?

 

[bluestorm]

Perhaps you should read the FHOG rules and stamp duty exception and reduction rules first. You are not eligable for the grant if your husband previously received one.

http://www.homeloanfinder.com.au/first-home-owner-grant/

• You or your spouse, partner or co-purchaser may not have claimed the grant previously.

The ATO does not consider you a "first home owner", even if you might. You will be paying full stamp duty.

 

[Rixter]

Also think seriously about purchasing your ppor in tenants in common (as you are suggesting) or in joint tenants. Do your research if you havent done so already as there is a big difference between the two. Usually ones ppor when bought together as husband and wife is purchased in joint tenants on the title.

I hope this helps.

 

[malipooh04]

Ok, thanks Rixter. I will google them now..
Yeah, we didn't have any hopes of getting the FHOG again given that my husbands used his up already.
Our conveyancer just mentioned something over the phone about being able to reduce stamp duty depending on the balance of ownership.
It was hard to understand her as she had a thick foreign accent and said I'd need to make an appointment to talk about it further, which I will probably end up doing. Just trying to get a bit of background on it first...

 

[csc2]

Stop trying to scam the taxpayer..me!

I really retest stuff like this....

Double dipping is just not on....

 

[chilliblue]

Stop trying to scam the taxpayer..me!

I really retest stuff like this....

Double dipping is just not on....

Agree with the above.

 

[Rixter]

Stop trying to scam the taxpayer..me!

I really retest stuff like this....

Double dipping is just not on....

Where's the scam

Where's the double dipping

 

[skater]

Now we've saved up enough of a deposit to get into our own place. I heard that putting 99% ownership in my name and 1% in his name might reduce stamp duty it'll be my first home.

Is this a QLD thing? I think I have heard before that the Stamp Duty in Qld has two tiers, one for PPOR and another for investment? If this is the case, then it won't matter how the percentages are split.

And when should we have paid CGT for the transfer of ownership to his dad?

There should be no CGT liability as it was a PPOR.

Where's the scam

Where's the double dipping

Yeah, I'm not sure either. It doesn't look like double dipping to me either.

 

[Ed Barton]

Is this a QLD thing? I think I have heard before that the Stamp Duty in Qld has two tiers, one for PPOR and another for investment? If this is the case, then it won't matter how the percentages are split.

There should be no CGT liability as it was a PPOR.

Yeah, I'm not sure either. It doesn't look like double dipping to me either.

SD (transfer duty) has two tiers and an extra 'concession' for FHO under the threshold - meaning no SD for low value purchase.

http://www.osr.qld.gov.au/duties/tr...s-and-concessions/concessions-for-homes.shtml - do your own research and look around the site, although in typical govt style the site is confusing. give them a call.

 

[JoshyBoi]

Where's the scam

Where's the double dipping

I agree with Rick - how is this either a scam or double dipping?

It's a legitimate question aimed at (hopefully) reducing the OPs potential tax bill - who doesn't try this??