Hi everyone
I was wondering if anyone maybe able to provide me with some guidance in terms of the options we have available to us.
Here is a brief description of our situation:
Property 1:
a. Purchased my first home in Melbourne in January 1993 (ie. in my own name) for a $93,000. I lived in the home for a number of years by myself before moving interstate.
b. After I moved interstate I then arranged for my parents to move into the property where they have remained since (ie. I have never charged them rent)
c. The property has never been rented as a result it has never ever been included in any of my tax returns as a rental property to the ATO
d. I recently has this property valued which came in around the vicinity of 520K
Property 2:
a. Then in March 2001 after meeting my wife purchased another home in Melbourne (ie. in both our names) and payed $250k plus stamp duty of approx 15K. (ie; total = 265K).
b. This was my wife?s first property purchase as she never owned a house before.
b. We had intentions of moving into the house straight away but because of work commitments we had to remain in Sydney indefinitely.
c. The house was then let as an investment property from March 2001.
d. The property however was only included on my tax return?s (ie. not those of my wife) an investment property.
d. Then in March 2007 my family and I moved back from Sydney (ie. house vacated by the tenants) and it became our place of residence- where we have remained until now.
e. We then had the property re-valued (ie. in March 2007) as we were considering a renovation and wanted to ensure that we didnt over capitalise. That valuation came in at $530K.
f. In March 2010-September 2010 we renovated the property spending 180K.
g. Recently we had this property revalued and were advised that it was in the vicinity of 850K
I am now looking to sell property 1 in the next few months and based on my understanding I can elect that to be my principle place of residence (ie. given that I lived there for a number of years and then moved out) but have never had it rented.
Therefore I wouldnt be required to pay any capital gains tax on the sale.
In terms of property 2 given that it was only included on my tax returns as an investment property and not on those of my wife.
If we were to transfer the property from both our name?s into that of my ?wife only? through ?Natural love & affection. Based on my understanding in Victoria there would be no stamp duty payable as a result. However we would incur some associated fees.
If we were to sell this property (ie. property 2) in the future after the transfer of title was completed.
Would that property be subject to capital gains tax given that it would be in my wifes name only (ie, not joint names), would be the only property she had ever owned (ie. her only PPOR). Plus it was never included on her tax returns as an investment property when it was rented.
Any assistance would be appreciated.
Thanks
I was wondering if anyone maybe able to provide me with some guidance in terms of the options we have available to us.
Here is a brief description of our situation:
Property 1:
a. Purchased my first home in Melbourne in January 1993 (ie. in my own name) for a $93,000. I lived in the home for a number of years by myself before moving interstate.
b. After I moved interstate I then arranged for my parents to move into the property where they have remained since (ie. I have never charged them rent)
c. The property has never been rented as a result it has never ever been included in any of my tax returns as a rental property to the ATO
d. I recently has this property valued which came in around the vicinity of 520K
Property 2:
a. Then in March 2001 after meeting my wife purchased another home in Melbourne (ie. in both our names) and payed $250k plus stamp duty of approx 15K. (ie; total = 265K).
b. This was my wife?s first property purchase as she never owned a house before.
b. We had intentions of moving into the house straight away but because of work commitments we had to remain in Sydney indefinitely.
c. The house was then let as an investment property from March 2001.
d. The property however was only included on my tax return?s (ie. not those of my wife) an investment property.
d. Then in March 2007 my family and I moved back from Sydney (ie. house vacated by the tenants) and it became our place of residence- where we have remained until now.
e. We then had the property re-valued (ie. in March 2007) as we were considering a renovation and wanted to ensure that we didnt over capitalise. That valuation came in at $530K.
f. In March 2010-September 2010 we renovated the property spending 180K.
g. Recently we had this property revalued and were advised that it was in the vicinity of 850K
I am now looking to sell property 1 in the next few months and based on my understanding I can elect that to be my principle place of residence (ie. given that I lived there for a number of years and then moved out) but have never had it rented.
Therefore I wouldnt be required to pay any capital gains tax on the sale.
In terms of property 2 given that it was only included on my tax returns as an investment property and not on those of my wife.
If we were to transfer the property from both our name?s into that of my ?wife only? through ?Natural love & affection. Based on my understanding in Victoria there would be no stamp duty payable as a result. However we would incur some associated fees.
If we were to sell this property (ie. property 2) in the future after the transfer of title was completed.
Would that property be subject to capital gains tax given that it would be in my wifes name only (ie, not joint names), would be the only property she had ever owned (ie. her only PPOR). Plus it was never included on her tax returns as an investment property when it was rented.
Any assistance would be appreciated.
Thanks
