Change Of Title Between Spouses

[ricflair]

Hi all,

Can someone tell me, if you wanted to turn your primary place of residence into a rental, if he house was in joint title between husband and wife can you transfer the title into the husbands name only for the tax benefits without having today stamp duty on the transfer.

Thanks in advance, Ric Flair

 

[thesuperman]

You would have to pay stamp duty on the wife's portion that you are transferring to the husband.

 

[RPI]

Correct. It is treated as a sale. Also CGT issues are possible.

regards

 

[Tigerboy]

If the property is in Victoria, then there is no stamp duty between husband and wife.

If you are transferring your PPOR then there is no CGT event.

 

[alaninbrisbane]

How Generous Is The Govt Anyway

The Only
way To Transfer Property Between Tenants In Common Is Through An Order From The Family Court Up Front Though Its Ok To Allocate 99% 1% To
Maximise Tax Benefits Yet Still Give The other party security On Title To My Knowledge

 

[Terry_w]

The Only
way To Transfer Property Between Tenants In Common Is Through An Order From The Family Court Up Front Though Its Ok To Allocate 99% 1% To
Maximise Tax Benefits Yet Still Give The other party security On Title To My Knowledge

Not true. Varies from state to state. In vic there is no stamp duty even for a sale at market value between spouses. In nsw stamp duty could be avoided without a court order if it relates to the breakdown in a relationship and there is a binding financial agreement in place.

 

[DaveM]

Terry what about adding someone to a title, eg a property owned by person A who gets married and wants wife/husband on the title. In NSW does that trigger tax/CGT/stamps?

 

[Aaron_C]

Terry what about adding someone to a title, eg a property owned by person A who gets married and wants wife/husband on the title. In NSW does that trigger tax/CGT/stamps?

That would trigger all those things, probably not CGT though, since 'adding' someone onto a title is considered selling 50% share in it.

 

[Terry_w]

Terry what about adding someone to a title, eg a property owned by person A who gets married and wants wife/husband on the title. In NSW does that trigger tax/CGT/stamps?

If it is a main residence in NSW and will continue to be then stamp duty could be avoided = or nominal amount.

But I don't know what effect this would have on the deductibility of interest if the property was later to become an investment property. It is essentially a gift of half the property to the incoming spouse. So I guess only half the loan could ever be deductible.

 

[thesuperman]

In nsw stamp duty could be avoided without a court order if it relates to the breakdown in a relationship and there is a binding financial agreement in place.

What happens if the relationship "breaks down" with a BFA & then it gets back together shortly after? lol